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COMPLETING THE AUDIT - Coggle Diagram
COMPLETING THE AUDIT
Elements of unqualified report
sufficient evidence accumulated, and auditor conducted audit with due care
financial statements presented in accordance with approve accounting standard and adequate disclosures
ISA have been followed in all respects
no circumstances require addition of an explanatory paragraph modifications of wording to the report
b/s, income statements, CF statements are included financial statements
Why auditor issue modified unqualified report
auditor agrees with departure from promulgated accounting principles
emphasis of any matter
substantial doubt about going concern
report involving other auditor
lack of consistent application of approved accounting standards
Type of Audit Report or Opinion
Modified audit report
disclaimer
qualified
adverse
Modified unqualified audit report
matters that do not affect auditor's opinion and financial statements show true and fair view but it is important to provide additional information
Unmodified audit report
standard unqualified opinion
matters that do not affect auditor's opinion and auditor concludes that financial statements are free of material statements
unqualified opinion with emphasis of matter or other matter paragraph
What type of modified audit report should be issue due to scope limitation or disagreement
disclaimer opiniona
adverse opinion
qualified or except for opinion
Requirement of unqualified opinion
expressed when auditor concludes that financial statements give true and fair view in accordance with applicable financial reporting framework
indicate implicitly that any changes in accounting principles or in the method of their application and effects that have been properly determined and disclosed in financial statements
Matters that affect auditor's opinion
limitation on scope of auditor work
lead to qualified opinion or disclaimer of opinion
disagreement with management regarding the acceptability of the accounting policies selected, method of application or adequacy of financial statement disclosures
lead to qualified opinion or adverse opinion