Question

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.

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