Chapter 3 – Audit Reports

Audit ReportsChapter 3©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 3 - 1Learning Objective 1Describe the parts of the standardunqualified audit report.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 3 - 2Parts of the StandardUnqualified Audit Report1. Report title2. Audit report address3. Introductory paragraph4. Scope paragraph5. Opinion paragraph6. Name of CPA firm7. Audit report date©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 3 - 3Learning Objective 2Specify the conditions requiredto issue the standard unqualifiedaudit report.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 3 - 4Conditions for StandardUnqualified Audit Report1. All financial statements are included.2. The three general standards have beenfollowed in all respects on the engagement.3. Sufficient evidence has been accumulatedto conclude that the three standards offield work have been met.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 3 - 5Conditions for StandardUnqualified Audit Report4. The financial statements are presented inaccordance with generally acceptedaccounting principles.5. There are no circumstances requiring theaddition of an explanatory paragraph ormodification of the wording of the report.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 3 - 6Four Categories of Audit Reports1. ...