Reference no: EM133184704

Audit Report Questions -

Q1. Explain why auditors' reports are important to users of financial statements and why it is desirable to have standard wording.

Q2. What are the purposes of the opinion section in the auditor's report? Identify the most important information included in the opinion section.

Q3. What are the purposes of the auditor's responsibilities section in the auditor's report? Identify the most important information included in the auditor's responsibilities section.

Q4 What four circumstances are required for a standard unmodified opinion audit report to be issued?

Q5. Describe the information included in the opinion and basis for opinion sections in a separate audit report on the effectiveness of internal control over financial reporting. What is the nature of the additional paragraphs in the audit report?

Q6 Distinguish between an unmodified opinion audit report that contains an emphasis-of-matter explanatory paragraph and a qualified report.

Q7 Distinguish between changes that affect consistency and those that may affect comparability but not consistency. Give an example of each.

Q8 Distinguish between a qualified opinion, an adverse opinion, and a disclaimer of opinion, and explain the circumstances under which each is appropriate.

Q9 Distinguish between a report qualified due to a GAAP departure and one qualified due to a scope limitation.

Q10 Define materiality as it is used in audit reporting. What conditions will affect the auditor's determination of materiality?