Question

In the AICPA Standard Unmodified Audit Report, management is identified as being responsible for all of the following except for

                a. Selecting appropriate accounting principles

                b. Maintaining good internal controls

                c. Reporting on their belief they can continue as a going concern

                d. Describing the scope of the audit

Answer 1

Unmodified audit report is often called as clean report, this report is issued when auditoe determines that each of the financial records provided by the small business is free from any misrepresentations. In addition , an unqualified opinion indicates that the financial records have been maintained in accords with standard on auditing .

Auditor while giving unmodified opinion need to even check going concern of entity , proper accounting priciples being followed or not, maintainece of good internal control is duty of management where as auditor will check its working to level of risk available in entity to select appropriate audit procedures.