S.No 1 2 3 4 5 8 9 10 Statement Emphasis of matter paragraph Helps in identifying the entity whose financial statements have been audited Title Introductory paragraph Managements' responsibility for the financial statement Determine whether any conditions exist requiring a departure from a standard unqualified report; Decide the level of materiality for each condition; Decide the appropriate type of report for the condition, given the materiality level; Write the audit report. Adverse opinion All statements- balance sheet, income statement, statement of retained earnings, and statement of cash flows- are included in the financial Statements Other matter paragraph Going Concern Could happen if there is scope limitation or GAAP departure, as long as the auditor concludes that the financial statements are fairly presented Addressee; element of audit report Answer Matching Statement Steps or procedure for writing the audit report Basis of accounting is a fundamental principle in the preparation of financial statements may be shareholder or board of director of a company an additional paragraph which auditor might add if in his eyes it is important to draw attention of user to a matter other than those disclosed or presented in the financial statements Qualified opinion Elements of standard unqualified auditors report paragraph that is included by the auditor in his report to direct the attention of users of financial statements Introductory paragraph Used when the auditor concludes that the financial statements are so misstated or misleading that they do not fairly present the income, financial position or cash flows of the company Circumstance for issuing an unqualified report