Question

• What does the scope paragraph of the unqualified report give information about?

Answer 1

Second paragraph of audit report is SCOPE PARAGRAPH. The purpose of scope paragraph is that the auditor informs the nature of audit procedures performed.

1. Scope paragraph states that the audit was conducted in accordance with generally accepted auditing standards and whether the audit provides a reasonable basis for an opinion.

2. The Scope paragraph also mentions that it included assessment of management's accounting policies and any significant estimates that management made.

3. The Scope paragraph describes that the procedures depend on the Auditors judgement and assessment of the risks of material misstatement.

4. It also mentions that the auditor didn't tasted hundred percent of the records, and used sample and tested.

5. It also states that audit is designed to obtain reasonable assurance about whether the statements are free of material misstatement.