BUS 426 Study Guide - Final Guide: Financial Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 426
• Professor: Craig Emby

Document Summary

Audit reports on financial statements: explain the report reservations and reasons for them (failure to follow ifrs and scope). Whenever the auditor faces either a gaap departure or scope limited, and it is material, a report other than an unqualified report must be issued. B(cid:455) (cid:373)odif(cid:455)i(cid:374)g the report, the auditor (cid:271)ri(cid:374)gs to the readers" atte(cid:374)tio(cid:374) of a(cid:374)(cid:455) (cid:272)o(cid:374)(cid:272)er(cid:374)s that auditors have about the quality of the financial statements. Four t(cid:455)pes of (cid:373)odified auditor"s reports u(cid:374)der two (cid:272)o(cid:374)ditio(cid:374)s. Auditor"s judge(cid:373)e(cid:374)t a(cid:271)out pervasive(cid:374)ess of effe(cid:272)ts o(cid:374) the. Gaap departure: when the auditor knows the financial statements are materially misstated, due to. Failure to disclosure essential information (ex. going concern problems) Inappropriate valuation and unreasonable estimates: the auditor will issue a qualified or adverse opinion, depending upon the pervasiveness of its effects. If found material and pervasive, which means the financial statements, as a whole, are misleading and misstated, then an adverse opinion will be issued.