Professional Documents
Culture Documents
Basic Elements
1. Title
2. Addressee
3. Introductory Paragraph
4. Management Responsibility
5. Auditors Responsibility
6. Auditors Opinion
7. Other Reporting Responsibilities
8. Auditors Signature
9. Date of Report
10. Auditors Address
1. Title - Indicates that the report is the report of an independent auditor in order to:
Emphasize independence; and
Distinguish the auditors report from reports that might be issued by others
2. Addressee
Indicates those parties for whom the report is prepared (such as: shareholders, BOD or a
third party requesting the audit)
Report should not be addressed to members of the management who are responsible for
the financial statements audited
SEC requires report to indicate the complete mailing address of the client if to be filed
with regulatory agencies
3. Introductory Paragraph
Identifies the name of the entity whose FS has been audited
States that the FS has been audited
Identifies the title of each of the FS audited including date and period covered by the FS
Refers to summary of significant accounting policies and explanatory notes
4. Auditors Opinion
This section should state whether the financial statements are presented fairly in all
material respects in accordance with applicable financial reporting framework
5. Basis for Opinion
Affirmative statement about the auditors independence
Fulfilment of relevant ethical responsibilities, with disclosure of the jurisdiction of the
origin of those requirements
6. Emphasis on Matter Paragraph
This section is an additional paragraph included in the report to give emphasis on
important matters affecting the FS or the auditors report
Inclusion does not negate auditors unmodified opinion
This is not a modification to the opinion or a substitute for the modified opinion
Limited only to matters presented or disclosed in the financial statements.
That the responsibility of the auditor is to express an opinion on the FS based on the audit
That the audit was conducted in accordance with PSAs
The general description of an audit
That the auditor believes that audit evidences obtained is sufficient and appropriate
Types of Opinion
Unqualified Opinion
When auditor concludes, based on audit evidence obtained, that the FS are presented fairly, in all
material respects in accordance with the applicable financial reporting framework.
This type of opinion is contained in the most common type of audit report: Unmodified or
Unqualified Report
PSA requires uniformity in the wording of the auditors report or standardized report to:
1. Uncertainties
Matters whose outcome depend on future actions or events not directly controlled by the
entity that may affect FS
Significant Uncertainties that are adequately accounted for and disclosed