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CAEA 3228

ADVANCED AUDITING

Audit Reports

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 222012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 22

Describe the parts of thestandard

unqua i!ed audit report"

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#arts of the $tandardUnqua i!ed Audit Report

%" Report tit e2" Audit report address

3" Introductor& para'raph(" $cope para'raph)" *pinion para'raph

+" Na,e of C#A !r,-" Audit report date

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 442012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 44

$pecif& the conditions required to issue thestandard unqua i!ed audit report"

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 552012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 55

Conditions for $tandardUnqua i!ed Audit Report

%" Inc udes a !nancia state,ents%" Inc udes a !nancia state,ents

2" Three 'enera standards are ,et2" Three 'enera standards are ,et.'enera standards/ standards of.'enera standards/ standards of!e d0or1 and standards of reportin'!e d0or1 and standards of reportin'

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 662012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 66

Conditions for $tandardUnqua i!ed Audit Report

(" inancia state,ents co,p & 0ith GAA#(" inancia state,ents co,p & 0ith GAA#

)" No circu,stances require an e4p anator&)" No circu,stances require an e4p anator&para'raph or report ,odi!cationpara'raph or report ,odi!cation

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 772012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 77

our Cate'ories of AuditReports

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 882012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 88

Describe the !5e circu,stances 0hen anunqua i!ed report 0ith an e4p anator&

para'raph or ,odi!ed 0ordin' isappropriate"

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 -2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 -

Unqua i!ed Report 0ithE4p anator& #ara'raph

%" 6ac1 of consistent app ication of 'enera &accepted accountin' princip es

2" $ubstantia doubt about 'oin' concern3" Auditor a'rees 0ith a departure fro,

pro,u 'ated accountin' princip es(" E,phasis of a ,atter)" Reports in5o 5in' other auditors

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 11112012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 1111

$ubstantia Doubt AboutGoin' Concern

$i'ni!cant recurrin' operatin'osses or0or1in' capita de!ciencies"

Inabi it& of the co,pan& to pa& its ob i'ations as the& co,e due" 6oss of ,a7or custo,ers/ theoccurrence of uninsured catastrophes"

6e'a proceedin's/ e'is ation that,i'ht 7eopardi e the entit&9s abi it& to operate

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 13132012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 1313

E,phasis of a :atter

Under certain circu,stances/ the C#A ,a&0ant to e,phasi e speci!c ,atters re'ardin'

the !nancia state,ents/ e5en thou'h theC#A intends to e4press an unqua i!ed opinion"

Subsequent

Events

Related Party

Transactions

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Reports In5o 5in' *therAuditors

%" :a1e no reference in the audit report

2" :a1e reference in the report.,odi!ed 0ordin' report

3" ;ua if& the opinion

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 15152012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 1515

Reports In5o 5in' *therAuditors

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Identif& the t&pes of audit reports that canbe issued 0hen an unqua i!ed opinion is

not 7usti!ed"

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 17172012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 1717

:ore Than *ne Condition Requirin'a Departure or :odi!cation

The auditor is not independent"

There is a scope i,itation"

Goin' concern uncertaint& e4ists"

$tate,ents are not prepared inaccordance 0ith GAA#"

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 20202012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 2020

Ad5erse *pinion

Auditor be ie5es the !nancia state,ents arenot presented fair & in confor,it& 0ith GAA# "

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Ad5erse *pinion

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Disc ai,er of *pinion

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E4p ain ho0 ,ateria it& a

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 25252012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 2525

:ateria it&

A ,isstate,ent in the !nancia state,entscan be considered ,ateria if 1no0 ed'e of

the ,isstate,ent 0ou d a

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2012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 26262012 Pearson Education,2012 Pearson Education, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 3 -3 - 2626

6e5e s of :ateria it&

A,ounts are i,,ateria "

A,ounts are ,ateria but do not o5ershado0the !nancia state,ents as a 0ho e"

A,ounts are so ,ateria or so per5asi5e thato5era fairness of the state,ents is in questio

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Than1 &ou for &our attentionDr. Noor Adwa Sulaiman

Room A1-10

!onsultation "ours#:onda& .2>3p, and b& appoint,ent

Email# nooradwa.sulaiman$%mail.com