Docstoc

the auditor's report

Document Sample
the auditor's report Powered By Docstoc
					 Auditor’s formal means of
 communicating to the interested
 parties a conclusion about audited
 financial information
 To give assurance and/or highlight
 problems with regard to the truth
 and fairness of the financial
 statement and compliance with the
 applicable reporting framework,
 law and other relevant regulation
 TITLE
 ADDRESSEE
 INTRODUCTORY PART
 STATEMENT OF THE RESPECTIVE
    RESPONSIBILITIES OF MANAGEMENT AND
    AUDITOR
   SCOPE OF THE AUDIT
   OPINION PARAGRAPH
   DATE OF THE REPORT
   AUDITOR’S ADDRESS
   AUDITOR’S SIGNATURE
The report is ordinarily addressed to
either to the shareholders or the board
of directors of the entity whose financial
statements are being audited



Example:
The Shareholders of ACB Inc.
 Identifies the financial statements and the
 accounting convention

 Example:
We have audited the consolidated balance
sheets of ACB Inc. at March 31, 2010 and 2011,
and the consolidated statements of earnings,
retained earnings, and cash flows for each of
the years then ended.
 OBJECTIVE:
To distinguish clearly the between the responsibility
of the governing body and the auditor.

Example:
These financial statements are the responsibility of
the Corporation’s management. Our responsibility is
to express an opinion on these financial statements
based on our audits
 It identifies the standard followed and
  describe the nature and scope of the
  audit
 Should include a statement that the
  audit was planned and performed to
  obtain reasonable assurance whether
  the financial statements are free of
  material misstatement
 We conducted our audits in accordance with
 Philippine generally accepted auditing standards.
 Those standards require that we plan and perform the
 audit to obtain reasonable assurance whether the
 financial statements are free of material misstatement.
 An audit includes examining, on a test basis, evidence
 supporting the amounts and disclosures in the
 financial statements. An audit also includes assessing
 the accounting principles used and significant
 estimates made by management, as well as evaluating
 the overall financial statement presentation.
 Intended to make clear that the report
  relates to an opinion being expressed by
  professional, experienced and expert
  person.
 The opinion refers to the entity’s financial
  position, results of the operations and cash
  flows and the notes to financial statements.
In our opinion, these consolidated financial
statements present fairly, in all material
respects, the financial position of the
Corporation at March 31, 2010 and 2011, and
the results of its operations and its cash flows
for the years then ended, in accordance with
Philippine generally accepted accounting
principles.
 Informs the reader that the auditor
 has considered the effect on the
 financial and on the report of
 events and transactions of which
 the auditor became aware and that
 occurred up to that date

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:6
posted:6/30/2012
language:English
pages:12