2.1. What Is Auditing Standard?: General Standards Standards of Fieldwork Standards of Reporting
2.1. What Is Auditing Standard?: General Standards Standards of Fieldwork Standards of Reporting
2.1. What Is Auditing Standard?: General Standards Standards of Fieldwork Standards of Reporting
The nature,
Scope,
Organization,
Level of materiality,
New audit work, and
Work with other auditors and experts.
Analysis of Financial
Statements
The second issue included is
analysis of financial statements.
Accounting issues requiring
subjective judgment, changes in
accounting policies, acquisitions
and disinvestments, financial
position, and quality of profits etc
are included.
Risk Management and Internal
Control
An auditor should, as soon as
practicable, either communicate
with the audit committee, the
board of directors and senior
management, or obtain evidence
that they are appropriately
informed, regarding non-
compliance (with applicable laws
and regulations) that comes to
the auditor’s attention.
Fees
Of course, every client is interested in
how much fees they are paying and
what services they receive.
Typically discussed in the long-form
report are an overview of the budget
and actual audit costs, costs for related
engagements, and service delivery
issues.
Service delivery issues would include
staffing, important changes, quality
survey and follow-up.
Reportable Conditions
Major internal control problems
(reportable conditions) should be
reported to management, and where
necessary, the board of directors.
In deciding whether a matter is a
reportable condition, the auditor
considers factors such as the size of
the company and its ownership
characteristics, the organizational
structure, and the complexity and
diversity of company activities.
ii. Short form Audit Report
This form of report is commonly
issued to non – administrative
stockholders, creditors, analysts
etc.
2.4.2 Types of Audit Reports
Reports are essential to audit and
assurance engagements because
they communicate the auditor’s
findings.
The audit report is the final step in
the entire audit process.
Users of financial statements rely
on the auditor’s report to provide
assurance on the company’s
financial statements.
The five (5) common types of auditor’s
reports are:
(1) Standard Unqualified Opinion Report
(2) Unqualified opinion with
explanatory paragraph or modified
wording.
(3) Qualified opinion Report
(4) Adverse Opinion Report
(5) Disclaimer opinion Report
1. Standard Unqualified Audit Report