Using the annual financial report obtained for Exercise 1-1, answer the following

questions:

a.Examine the auditors report. Is the auditor identified as an independent CPA firm? A

state audit agency? Other? Is the wording of the auditors report the same as illustrated

in this chapter? Does the scope paragraph indicate exactly what is covered by the

auditors opinion? If the auditor is expressing an opinion only on the basic financial

statements, what responsibility is taken for the combining and individual fund

statements? Is the opinion unqualified? If not, what are the qualifications