Your firm has many clients and many audits reporting obligations. The audits of most clients result in an unmodified opinion. The following draft represents the report that you contemplate for your nonissues. Independent Auditor's Report To: The Board of Directors We have [1] the accompanying financial statements of X Company, which comprise the balance sheets as of December 31, 20X1, and 20X0, and the related statements of income, changes in stockholders' equity, and [2] for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements [3] is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with [4] in the United States of America. Those standards require that we plan and perform the audit to obtain [5] about whether the financial statements are [6] misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the [7], including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are [8] in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by [9], as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is [10] and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, [11], the financial position of X Company as of December 31, 20X1, and 20X0, and the results of its operations and its cash flows for the years then ended in accordance with [12] generally accepted in the United States of America.
Your firm has many clients and many audits reporting obligations. The audits of most clients result in an unmodified opinion. The following draft represents the report that you contemplate for your nonissues.
Independent Auditor's Report
To: The Board of Directors
We have [1] the accompanying financial statements of X Company, which comprise the
Management's Responsibility for the Financial Statements
[3] is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with [4] in the United States of America. Those standards require that we plan and perform the audit to obtain [5] about whether the financial statements are [6] misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the [7], including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design
We believe that the audit evidence we have obtained is [10] and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements referred to above present fairly, [11], the financial position of X Company as of December 31, 20X1, and 20X0, and the results of its operations and its
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