The two standard-setting bodies are the PCAOB for the audits of public companies and the ASB for the audits of private companies. Each organization has a standard format for the auditor's report on the financial statements. There are similarities and differences in the two standard formats. For each item listed below, indicate if the item or phrase appears in the unmodified audit report of the ASB, the unqualified audit report of the PCAOB, or both. 1. 2. 3. 4. 5. 6. 7. 8. 9. Contains the word "independent" in the title. We have also audited the company's internal control over financial reporting. In our opinion, the financial statements present fairly, in all material respects, the financial position of the company. We are required to be independent with respect to the company in accordance with the U.S. federal securities laws. Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements. Contains a section on critical audit matters. Dated as of the end of fieldwork. Contains a statement about auditor tenure. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Obtain reasonable assurance about whether the 10. financial statements are free from material misstatement. Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Audit reports of both bodies-ASB and PCAOB
The two standard-setting bodies are the PCAOB for the audits of public companies and the ASB for the audits of private companies. Each organization has a standard format for the auditor's report on the financial statements. There are similarities and differences in the two standard formats. For each item listed below, indicate if the item or phrase appears in the unmodified audit report of the ASB, the unqualified audit report of the PCAOB, or both. 1. 2. 3. 4. 5. 6. 7. 8. 9. Contains the word "independent" in the title. We have also audited the company's internal control over financial reporting. In our opinion, the financial statements present fairly, in all material respects, the financial position of the company. We are required to be independent with respect to the company in accordance with the U.S. federal securities laws. Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements. Contains a section on critical audit matters. Dated as of the end of fieldwork. Contains a statement about auditor tenure. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Obtain reasonable assurance about whether the 10. financial statements are free from material misstatement. Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Unqualified audit report-PCAOB Audit reports of both bodies-ASB and PCAOB Audit reports of both bodies-ASB and PCAOB
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The two standard-setting bodies are the PCAOB for the audits of public companies and the ASB for the audits of
private companies. Each organization has a standard format for the auditor's report on the financial statements. There
are similarities and differences in the two standard formats.
For each item listed below, indicate if the item or phrase appears in the unmodified audit report of the ASB, the
unqualified audit report of the PCAOB, or both.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Contains the word "independent" in the title.
We have also audited the company's internal
control over financial reporting.
In our opinion, the financial statements present
fairly, in all material respects, the financial position
of the company.
We are required to be independent with respect to
the company in accordance with the U.S. federal
securities laws.
Management is responsible for the design,
implementation, and maintenance of internal
control relevant to the preparation and fair
presentation of the financial statements.
Contains a section on critical audit matters.
Dated as of the end of fieldwork.
Contains a statement about auditor tenure.
Obtain an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of
internal control.
Obtain reasonable assurance about whether the
10. financial statements are free from material
misstatement.
Audit reports of both bodies-ASB and PCAOB
Unqualified audit report-PCAOB
Audit reports of both bodies-ASB and PCAOB
Unqualified audit report-PCAOB
Audit reports of both bodies-ASB and PCAOB
Unqualified audit report-PCAOB
Audit reports of both bodies-ASB and PCAOB
Unqualified audit report-PCAOB
Audit reports of both bodies-ASB and PCAOB
Audit reports of both bodies-ASB and PCAOB
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