CHAPTER 2 AUDIT REPORTS

ATTESTATION REPORTS AUDIT REPORT ON GAAP STATEMENTS SPECIAL REPORT ATTESTATION REPORT REVIEW REPORT

STANDARD UNQUALIFIED AUDIT REPORT CONDITIONS FOR REPORT –ALL STATEMENTS ARE PRESENTED –THREE GENERAL GAAS STANDARDS MET –SUFFICIENT EVIDENCE GATHERED –F/S PRESENTED WITH GAAP –NO MODIFICATIONS NEEDED

PARTS OF REPORT –TITLE –ADDRESS –INTRODUCTORY PARAGRAPH –SCOPE PARAGRAPH –OPINION PARAGRAPH –NAME OF CPA FIRM –REPORT DATE

CATEGORIES OF AUDIT REPORTS STANDARD UNQUALIFIED –MODIFIED FOR EXPLANATORY PARAGRAPH LACK OF CONSISTENCY SUBSTANTIAL DOUBT ABOUT GOING CONCERN 203 DEPARTURE FROM GAAP EMPHASIS OF A MATTER OTHER AUDITORS

CONDITIONS REQUIRING DEPARTURE FROM STANDARD OPINION –SCOPE OF AUDIT HAS BEEN RESTRICTED –FINANCIALS ARE NOT GAAP –AUDITOR NOT INDEPENDENT OTHER REPORTS –QUALIFIED OPINION –ADVERSE OPINION –DISCLAIMER OF OPINION

MATERIALITY DEFINITION –AMOUNTS ARE IMMATERIAL –AMOUNTS ARE MATERIAL BUT NOT PERVASIVE –AMOUNTS ARE PERVASIVE MATERIALITY DECISIONS –DOLLAR AMOUNT – BASE –SCOPE LIMITATION CONDITIONS

CONDITION REQUIRING A DEPARTURE SCOPE HAS BEEN RESTRICTED –CLIENT IMPOSED RESTRICTIONS AICPA SUGGESTS A DISCLAIMER –CIRCUMSTANCE IMPOSED RESTRICTIONS DEPENDING ON MATERIALITY –QUALIFIED OPINION OR DISCLAIMER NOT GAAP –MATERIALITY QUALIFIED OR ADVERSE –203 DEPARTURES

AUDITOR DECISION PROCESS CONDITIONS EXIST REQUIRING DEPARTURE? DECIDE MATERIALITY FOR SUCH CONDITION DECIDE APPRPORIATE REPORT FOR THE CONDITION WRITE THE REPORT