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Audit Reports

Audit Reports. Chapter 3. Jody. Briefly What is the cover story Halvorson & Co., CPAs Machinetron, Inc. Phases of an Audit p. 160. Jody. Briefly What are three Standards of Field Work ?. standards of field work performance of the audit. Proper planning and supervision

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Audit Reports

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  1. Audit Reports Chapter 3

  2. Jody Briefly What is the cover story Halvorson & Co., CPAs Machinetron, Inc

  3. Phases of an Audit p. 160

  4. Jody Briefly What are three Standards of Field Work ?

  5. standards of field workperformance of the audit • Proper planning and supervision • Sufficient understanding of the entity and its internal control • Sufficient appropriate evidence

  6. Emily A What are the three paragraphs in the independent auditors’ standard report ?

  7. Paragraphs in standard reportingthe auditor’s report • introductory • scope • opinion

  8. page 45

  9. page 48

  10. Minh What audit report do we issue if everything if OK ? the financial statements are fairly presented there are no material misstatements

  11. We have audited the accompanying balance sheet of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the related statements of income, retained earnings and cash flowsfor the three year then ended Dec. 31, 2012. These statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly,in all material respects, the financial position of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally accepted in the United Stated.

  12. The Book has helpful tables on page 61 table 2 page 62 table 3

  13. All Std Reports are Unqualified Opinions Not all Unqualified Opinions are Std Reports Standard Report Unqualified Opinion Everything OK Qualified Opinion or Disclaim an Opinion GAAS problem We did not comply with auditing standards (GAAS) Qualified Opinion or Adverse Opinion GAAP problem NOT fairly presented f/s do not conform to GAAP

  14. Katelyn M State the first sentence of each paragraph.

  15. We have audited the accompanying financial statements balance sheet of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the related statements of income, retained earnings and cash flowsfor the three year then ended Dec. 31, 2012. These statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with GAAS auditing standards generally accepted in the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly,in all material respects, the financial position of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the results of its operations and cash flows for the year then endedin conformity with GAAP accounting principles generally accepted in the United Stated.

  16. Daniel the company reports financial instruments using ASU 2011-04 for 2011, the current year ( Accounting Standards Update 2011-04 is an amendment regarding Fair Value Measurement) different accounting principles are used in 2011 relative to 2010 because ASU 2011-04 is new

  17. Unqualified Opinion Consistency We have audited the accompanying balance sheet of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the related statements of income, retained earnings and cash flows for the three year then ended Dec. 31, 2012. These statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally accepted in the United Stated. [ explanatory paragraph discussing the change in accounting principles ]

  18. Ashley What is the second standard of reporting?

  19. 2nd standard of reporting The auditor must identify in the auditor’s report those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period

  20. Charlie Where in the independent auditor’s report do we address consistency (the second standard of reporting )? The auditor must identify in the auditor’s report those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period

  21. Unqualified Opinion Consistency We have audited the accompanying balance sheet ofMiller Motor Co. as of Dec. 31, 2012 and 2011, and the related statements of income, retained earnings and cash flows for the three year then ended Dec. 31, 2012. These statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally accepted in the United Stated. [ explanatory paragraph discussing the change in accounting principles ]

  22. Mulu what does it imply about GAAP when the first three paragraphs of the report have not been modified but there is a fourth paragraph following the opinion paragraph

  23. We Not Express an opinion Do Not Present Fairly

  24. Chelsea W the financial statements are fairly presented but the company will probably go bankrupt the financial statements clearly indicate the company is in trouble but…..

  25. Unqualified Opinion Going Concern We have audited the accompanying balance sheet of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the related statements of income, retained earnings and cash flows for the three year then ended Dec. 31, 2012. These statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally accepted in the United Stated. [ explanatory paragraph expressing doubt as to the Company’s ability to continue operating as a going concern for the next year ]

  26. Alexandra H the client faces a huge environmental liability they will probably incur a very large loss they cannot estimate the amount of the loss it will be material Although this matter has been appropriately disclosed in a footnote, you wish to emphasize the matter

  27. Unqualified Opinion Emphasis of Matter We have audited the accompanying balance sheet of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the related statements of income, retained earnings and cash flows for the three year then ended Dec. 31, 2012. These statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Miller Motor Co. as of Dec. 31, 2012 and 2011, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally acceptedin the United Stated. [ explanatory paragraph discussing the liability ]

  28. We Not Express an opinion Do Not Present Fairly

  29. Rule 203 departure • Example on page 51 discusses Rule 203 Justified Departures from GAAP • Page 94 Rule 203: Rules of Conduct

  30. All Std Reports are Unqualified Opinions Not all Unqualified Opinions are Std Reports Standard Report Unqualified Opinion Everything OK Qualified Opinion or Disclaim an Opinion GAAS problem We did not comply with auditing standards (GAAS) Qualified Opinion or Adverse Opinion GAAP problem NOT fairly presented f/s do not conform to GAAP

  31. We Not Express an opinion Do Not Present Fairly

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