Question
What are the different types of audit reports and when should each be used? In what types of situations would an auditor be allowed to
What are the different types of audit reports and when should each be used?
In what types of situations would an auditor be allowed to issue an unqualified audit report?
To what extent is the auditor liable for misstatements in the financial statements of the audited company?
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What are the different types of audit reports and when should each be used The four types of auditor reports are Unqualified opinionclean report Qualified opinionqualified report Disclaimer of opiniondisclaimer report Adverse opinionadverse audit report Unqualified Opinion Clean Report An Unqualified opinion is considered a clean report This is the type of report that auditors give most often This is also the type of report that most companies expect to receive An unqualified opinion doesnt have any kind of adverse comments and it doesnt include any disclaimers about any clauses or the audit process This type of report indicates that the auditors are satisfied with the companys financial reporting The auditor believes that the companys operations are in good compliance with governance principles and applicable laws The company the auditors the investors and the public perceive such a report to be free from material misstatements Qualified OpinionQualified Report When an auditor isnt confident about any specific process or transaction that prevents them from issuing an unqualified or clean report the auditor may choose to issue a qualified opinion Investors dont find qualified opinions acceptable as they project a negative opinion about a companys financial status Auditors write up a qualified opinion in much the same way as an unqualified opinion with the exception that they state the reasons theyre not able to present an unqualified opinion A common for reason for auditors issuing a qualified opinion is that the company didnt present its records with GAAP Disclaimer of OpinionDisclaimer Report When an auditor issues a disclaimer of report it means that they are distancing themselves from providing any opinion at all related to the financial statements Some of the reasons that auditors may issue a disclaimer of opinion ...
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Bank Management
Authors: Timothy W. Koch, S. Scott MacDonald
8th edition
1133494684, 978-1305177239, 1305177231, 978-1133494683
