Question

The auditor’s standard report contains standardized wording. Listed below are the sentences in the standard report....

The auditor’s standard report contains standardized wording. Listed below are the sentences in the standard report. 1- We conducted our audit in accordance with generally accepted auditing standards. 2- We believe that our audit provides a reasonable basis for our opinion. 3- In our opinion, the financial statements presented fairly, in all material respects, in conformity with GAAP. 4- Our responsibility is to express an opinion on these financial statements based on our audits. 5- Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 6- An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. REQUIRED: Identify the paragraph in which each sentence appears.

Homework Answers

Answer #1

1.  We conducted our audit in accordance with generally accepted auditing standards. - Scope paragraph

2. We believe that our audit provides a reasonable basis for our opinion - Scope paragraph

3. In our opinion, the financial statements presented fairly, in all material respects, in conformity with GAAP - Opinion paragraph

4. Our responsibility is to express an opinion on these financial statements based on our audits - Introductory paragraph

5. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement - Scope paragraph

6. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation - Scope paragraph

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