Question: This milestone will give you practice with drafting audit reports. When you write an audit report, there are the following four opinion types that an
This milestone will give you practice with drafting audit reports. When you write an audit report, there are the following four opinion types that an auditor can formulate: an unqualified opinion or clean report qualified opinion, disclaimer of opinion, and adverse opinion. In this milestone, you will focus on the simplest opinion type: the unqualified opinion. In Project Two in Module Nine, you will consider all four opinion types. You are an auditor for Tuesday & Co CPAs. Your supervisor has asked you to prepare an audit report for Crusoe, one of the firms clients. You begin your audit report by reviewing the relevant background information on Crusoe. Prepare the audit report for the firms client. Specifically, you must address the following rubric criteria: Outline the possible assertions regarding the financial data. Consider the following: Accuracy and valuation, existence, completeness, rights and obligations, and presentation and disclosure Describe the control gaps and anomalies Critical Audit Matters CAMs present in the summary of audit findings. Describe the connection between the findings and generally accepted auditing standards GAAS Summarize an opinion of the audit results. Include the following: The validity of the resultsThe impact of the external audit on the client Identify the required elements to be communicated CAMs in the audit report. Tuesday's audit report was submitted to Crusoe's board of directors based on the and comparative financial statements. Tuesday conducted an audit of Crusoe's internal controls over financial statements based on the COSO framework. No material weaknesses were identified. Below is the information for and respectively: For the year ended December Tuesday & Co CPAs Tuesday audited the financial statements of Crusoe, a public company, and expressed an unqualified opinion of the balance sheet only. Tuesday did not observe the count of the physical inventory as of December because that date was prior to its appointment as auditor. Tuesday was unable to satisfy itself regarding inventory by means of other auditing procedures, so it did not express an opinion on the other financial statements that year. For the year ended December Tuesday expressed an unqualified opinion on all the basic financial statements and satisfied itself as to the consistent application of Generally Accepted Accounting Principles. The fieldwork was completed on March ; the partnerincharge reviewed the working papers and signed the auditor's report on March The report on the comparative financial statements for and was delivered to Crusoe on March
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