Essay on Ch 12 Notes

Submitted By angeloflilies
Words: 2614
Pages: 11
Open Document
4 Parts of Audit Report
1. Introductory paragraph
a. F/S and years examined
2. Management’s Responsibility section
a. Management responsible for financial statements
b. Management responsible for internal control
3. Auditor’s Responsibility section
a. Auditor responsible for issuing opinion on financial statements
b. Audit conducted in accordance with GAAS
c. Audit provides reasonable assurance
4. Opinion
Are F/S presented in accordance with applicable financial reporting framework (GAAP)?
(Additional paragraph – Identifies departure from GAAP)
First 4 Sentences:
1. Intro: We have audited the accompanying F/S of Company, which comprise the balance sheet as of December 31, 2014, and the related statements of income, changes in shareholders’ equity, and cash flows for the year then ended, and the related notes to the F/S.
2. Management’s responsibility for the F/S: Management is responsible for the preparation of these F/S in accordance with accounting principles generally accepted in the US of A; this includes the design, implantation, and maintenance of internal control relevant to the preparation and fair presentation of F/S that are free from material misstatement, whether due to fraud or error.
3. Auditor’s responsibility: Our responsibility is to express an opinion on these F/S based on our audit.
4. Opinion: In our opinion, the F/S referred to above present fairly, in all material respects, the financial position of Company as of December 31, 2014, and the results of its operation and its cash flows for the year then ended in accordance with accounting principles generally accepted in the US of A.
4 types of opinion
1. An unmodified opinion in which the conclusion is that the F/S present the financial condition, results of operations, and cash flows in accordance with GAAP. (Until recently, this type of opinion was referred to as an unqualified opinion).
2. A qualified opinion in which the conclusion is that, with the exception of one or more issues, the financial statements present the financial condition, results of operations, and cash flows in accordance with GAAP. Qualified opinions use the phrase except for in describing the issues that give rise to the qualification. Interestingly, although the term “qualified” normally has a positive connotation, qualified opinions are issued when one or more issues are encountered during the audit.
3. An adverse opinion, in which the conclusion is that the financial statements do not present the financial condition, results of operations, and cash flows in accordance with GAAP.
4. A disclaimer of opinion, in which the auditors do not express an opinion on the fairness of the entity's financial statements.
Fresno Green Company, What opinion will the auditor need to issue Unmodified- No material issue
What is qualified opinion and changes to the audit report - Scope Limitation: Qualified Opinion
Issued when scope limitations are material, but not pervasive
Report Modifications:
Add paragraph preceding the opinion paragraph describing the scope limitation
Modify opinion paragraph (“In our opinion, except for”)
Clovis Yellow Company, What opinion will the auditor need to issue?
Qualified: If the departure is sufficiently material to affect users' decisions based on the financial statements but can be compartmentalized, the auditors must qualify the opinion. By “compartmentalized,” we mean that the departure can be isolated to a particular account group (e.g., accounts receivable not valued at net realizable value) or transactions (e.g., failure to capitalize leases) without affecting other accounts to a material extent.
Adverse opinion and changes
Adverse: On the other hand, if the GAAP departure is pervasive, affecting numerous accounts and financial statement relationships, or is material to the point that the financial statements as a whole are misleading, the auditors must issue an adverse opinion. As noted earlier, in an adverse opinion, auditors conclude that the
Show More

Related Documents: Essay on Ch 12 Notes

Syllabus: Supply Chain and Web Site Essay

second will be five in-class quizzes, which will be on the material covered during the weeks preceding each quiz. The third component will be in-class case study presentations. The fourth component will consist of two mid term exams, and one final exam. NOTE: The quizzes will be administered using Turning Technologies response cards (aka “clickers”), details of which will be posted on my web site. These devices are obtainable either at the book store on campus, or directly from Turning Technologies’ web…

Words 2123 - Pages 9

Umars Study Schedule Essay

information in accordance with the new AP biology exam. ☐ Read AP Cliffs Ch. 1 “Chemistry” takes notes and memorize it ☐ Read AP Barron’s Biology Ch. 3 “Biochemistry” (notes are online on the dat bootcamp website) Before you begin to watch Chad’s videos, print out all the outlines, hole punch them, and place them in a binder. Include a few sheets of loose-leaf paper at the end of each section so you can take notes. Take diligent notes as you watch the videos, copy the examples, and re-watch them if…

Words 3491 - Pages 14

A Proper Syllabus Essay

contact the Disabled Students Programs and Services (DSP&S) Department. Please discuss your accommodations with me during office hours or after class and be sure to allow at least one week to arrange appropriate classroom or testing accommodations. Note: With the appropriate documentation, all class materials can be provided in alternate forms, such as large print, audiotape, Braille, or a computer file. Requests can be made by calling the DSP&S Department at (626) 914-8675. Required course materials…

Words 3047 - Pages 13

Final Examination and Class Essay

points. The final exam is worth 100 points. Please bring a sharpened number two pencil to all exams. If school is cancelled because of bad weather, the exam will be given on the next scheduled class day. The final exam is mandatory. NOTE: If a student misses exams one through three for any reason, that exam will be the one dropped. In the rare case when a student misses a second exam, the student will have one week from the date of the scheduled exam to take the make-up exam.…

Words 1522 - Pages 7

Essay on Psyc 1301 syllabus

information about psychological topics encountered on a day-to-day basis. Course Structure: This will be a lecture style course in which students will complete assigned readings outside of class and attend lecture to gain insight and take additional notes. Student performance will be assessed through four multiple-choice exams. Material for these exams may be drawn from lecture, readings and any supplemental readings/activities/or multi-media used in class. Grading: Final grades will be based on…

Words 1289 - Pages 6

Nutrition and Assignments Essay examples

Please see Evaluation Criteria for Written Assignments. NO EXCEPTIONS. 7. Throughout the course, we will watch pertinent videos. Material from these videos will be covered on exams-Take Notes! Computer Usage During Class Laptops and other electronic devices should strictly be used for the purpose of taking notes during class time. If caught doing work for other classes, checking Facebook, playing games, etc., 10 points will be deducted from an exam score. Attending class and paying attention is…

Words 1214 - Pages 5

HIST 1100 3 Syllabus Essay

history is based Books: Rourke et al, The American Promise (5th ed.) Grading: Exam 1 (Sept 23): 20% Exam 2 (Nov 4): 20% Final Exam (Dec 16 at 12:30-2 pm): 40% Section Participation: 20% Requirements: 1. Students are expected to keep up with the assigned readings and to attend lecture twice a week. Students who must miss lecture should get notes from a fellow student and may also wish to meet with their TA. 2. Students are expected to study the primary sources, complete assigned questions…

Words 1768 - Pages 8

NTC/362 Week 1: Evolution Of The Telecommunications Industry

telecommunications network structures. 3/19/12 * Reading Read the “Political and Regulatory Forces in Telecommunications” section in Ch. 1, “Telecommunications Technology Fundamentals,” of Telecommunications Essentials. 3/19/12 * Reading Read Ch. 3, “Establishing Communications Channels,” of Telecommunications Essentials. 3/19/12 * Reading Read the “The PSTN Infrastructure” section in Ch. 4, “The PSTN,” of Telecommunications Essentials. 3/19/12 * Reading Read Ch. 6, “Local Area Networking,” of Telecommunications…

Words 2255 - Pages 10

Risk and Carey Business School Essay

Managing Financial Risk 2 Credits BU.230.730.83 Tuesday 1:30 p.m. – 4:30 p.m. From 3/24/2015 to 5/12/2015 Semester: Spring-2 Class Location: 203/204 (Harbor East) Instructor Nicola Fusari Contact Information Phone Number: (410) 234-9411 E-mail Address: nicola.fusari@jhu.edu Office Hours Baltimore: Wednesday 9:00 a.m. -12:00 p.m. (appointment only) Required Text and Learning Materials: Christoffersen P. F. (2012), Elements of Financial Risk Management, 2nd Edition, Elsevier. This is a technical…

Words 1588 - Pages 7

Essay on hog jog mog

Traditions). Your topic must meet my approval before proceeding with your paper proposal and annotated bibliography. Email your topic choice and I will reply. 5. Group projects will be assigned at the start of the semester. Groups will consist of 12 to 13 students who will be responsible for a particular chapter in the book. They will present the chapter in class covering all of the major issues, events and individuals important to that particular section. Students are encouraged to be creative…

Words 1175 - Pages 5