ACC 521 Chapter Notes - Chapter 4: Financial Statement, Cash Flow Statement, Audit
6 Mar 2014
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Document Summary
Chapter 4 reports on audited financial statements. Auditing standards prohibit the use of negative assurance in reports on audited financial statements because it is considered too weak a conclusion for the audit effort involved. However it is permitted in reviews of unaudited financial statements, letters to underwriters, and in reviews of interim financial information. Ideal for review engagements: no assurance the pa provides zero assurance credibility because there is no independent verification of the data provided by the client. Ideal for compilation engagements because no evidence is required. Auditor"s reports and variations: the standard unmodified report four segments: Introductory paragraph declares that an audit has been conducted and identifies the financial statements audited. We conducted our audit in accordance with canadian generally accepted auditing standards. Financial statements are presented fairly in all material respects in accordance with gaap. No reasons for giving the opinion need to be expressed.
