Audit Opinions

Intro Unqualified Opinon Modified Unqualified Opinion Another CPA Division of Responsibility Modified Modified No Modified Mention other CPA in all three paragraphs (expressed as %'s) X Scope X Explanatory Paragraph Opinion X Description

Assumption of Responsibility

Standard

Standard

No Before or After opinion After Opinon Before or After opinion

Standard

No reference to CPA (assure themselves of independence, reputation, competence - must visit with other auditor to discuss audit procedures, documentation,and evaluation of internal control Explanatory paragraph contains description of departure & reasons why adherence to GAAP would make F/S misleading Explanatory paragraph must include wording of substantial doubt and going concern (don't say for 1 year) Auditor wants to emphasize a matter Acceptable/justified change in accounting principle Change in estimates or corrections of error do not affect consistency & does not affect auditors report Change in depreciation method requires addition of explanatory paragraph

Justified Non-GAAP Going Concern Emphasis Matter (Professional judgment)

Standard Standard Standard

Standard Standard Standard

Standard Standard Standard

Consistency Qualified - GAAP (material) "except for" Non GAAP Change Inadequate Disclosure

Standard

Standard

After Opinon

Standard

Standard Standard

Standard Standard

Before Opinion Before Opinion

"Except for" "Except for"

Auditor disagrees with GAAP change Entity's failure to disclose info that is required by GAAP Make sure omission of cashflow stmt does not make F/S false, misleading, fraudulent and deceptive No mention of cashflow stmt needed in intro b/c auditor did not examine it

No Statement of Cash Flow Unjustified Departure from GAAP Unreasonable Acctg Estimate Adverse (very material) - GAAP "b/c of the effects" Non GAAP Change Inadequate Disclosure Unjustified Departure from GAAP Unreasonable Acctg Estimate Qualified - GAAS (material) "except for" Uncertainty

Standard Standard Standard

Standard Standard Standard

Before Opinion Before Opinion Before Opinion

"Except for" "Except for" "Except for"

Disclose missing statement and related effects in explanatory paragraph F/S not prepared in accordance with GAAP and effect on F/S's are material Auditor concludes mgmt's estimate is unreasonable and effect on F/S's are material

Standard Standard Standard Standard

Standard Standard Standard Standard

Before Opinion Before Opinion Before Opinion Before Opinion

"B/C of the effects" "B/C of the effects" "B/C of the effects" "B/C of the effects"

Standard

"Except"

Before Opinion

"Except for"

Auditor unable to obtain sufficient audit evidence to support mgmt's assertion involving an uncertainty Auditor unable to complete audit fully due to time constraints, obtain sufficient evidence, mgmt refusal to provide rep letter and refusal of client attorney to respond to inquiry

Scope Limitation Disclaimer - GAAS (significant)

Standard

"Except"

Before Opinion

"Except for"

Nature of scope described in explanatory paragraph before opinion paragraph and referred to in scope and opinion paragraphs

Uncertainty

Scope Limitation

"Were engaged to audit" "Were engaged to audit"

Omitted

Reasons for disclaimer Reasons for disclaimer

Omitted

Disclaimer of opinion given on F/S taken as a whole No evidence Disclaimer of opinion given on F/S taken as a whole

Audit Opinions
Intro "Were engaged to audit" Scope Explanatory Paragraph Reasons for disclaimer Opinion Disclaimer of opinion given on F/S taken as a whole No audit work = No audit opinion False, fraudulent, deceptive and misleading and mgmt fefuses Description

Lack of Independence Unaudited Withdrawal

Omitted