BU477 Chapter Notes - Chapter 19: Financial Statement
Document Summary
Performing f/s audit responsibilities: 1) form opinion on f/s and 2) issue opinion in written report that describes basis of conclusion. Unqualified independent audito(cid:396)"s repo(cid:396)t: (cid:862)clea(cid:374) opi(cid:374)io(cid:374)(cid:863); (cid:373)ost (cid:272)o(cid:373)(cid:373)o(cid:374) Most common b/c companies typically make required adjustments to f/s and disclosures rather than receive a qualified opinion. Securities legislation requires unqualified audit opinion in case of public companies. Unqualified opinion: conditions to be met: audit engagement has been undertaken to express an opinion on f/s, auditor followed generally accepted auditing standards (gaas, auditor was able to perform all necessary procedures, f/s (incl. B/s, i/s, r/e, cfs, and notes) are fairly presented in accordance with appropriate applicable financial reporting framework: no (cid:272)i(cid:396)(cid:272)u(cid:373)sta(cid:374)(cid:272)es, i(cid:374) audito(cid:396)"s opi(cid:374)io(cid:374), (cid:396)e(cid:395)ui(cid:396)i(cid:374)g (cid:373)odifi(cid:272)atio(cid:374) of (cid:449)o(cid:396)di(cid:374)g of (cid:396)epo(cid:396)t o(cid:396) adding additional explanatory paragraph. Signature of audit firm firm name or personal name. Auditor issues unqualified opinion but modifies report with addition of either emphasis of matter or other matter explanatory paragraph.
