Lecture Principles of auditing and other assurance services (15/e) - Chapter 17: Auditors’ reports. This chapter explained the different types of reports that auditors issue to indicate the character of their audit and the degree of responsibility they are taking. | Auditors’ Reports Chapter 17 1 We have audited the accompanying balance sheet of XYZ Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. The AICPA Standard Auditors’ Report--Introductory Paragraph 17- 2 2 2 2 We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the | Auditors’ Reports Chapter 17 1 We have audited the accompanying balance sheet of XYZ Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. The AICPA Standard Auditors’ Report--Introductory Paragraph 17- 2 2 2 2 We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The AICPA Standard Auditors’ Report--Scope Paragraph 17- 3 3 3 3 In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of XYZ Company as of December 31, 20XX, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. The AICPA Standard Auditors’ Report--Opinion Paragraph 17- 4 4 4 4 Conditions Required for Issuance of an Unqualified Report The financial statements are presented in conformity with GAAP, including adequate disclosure. The audit was performed in accordance with GAAS, and there were no significant scope limitations. 17- 5 5 5 5 Modifications of the Auditors’ Report--Unqualified Opinions Type of Report Introductory or Scope Paragraph Explanatory Paragraph Opinion .
