Auditor's report

An assurer must have the knowledge and expertise to assess the truth and fairness of the information being presented by the preparers. Auditors of financial reports need to be trained accountants with detailed knowledge about the complex technical accounting and disclosure issues required to assess the choices made by the financial report preparers. When undertaking an audit, the auditor should use professional scepticism, professional judgement and due care. Auditors should be independent of the

that the word “independence” already appears in the auditor’s report mean that the auditors should be independent. When the word “independence” is repeated later in the report, it does not add to investor’s confidence. The independent of an auditor is understood and should be stated once, therefore creating less clutter in the auditor’s report. Simply stating that an auditor is independent more often does not have significant changes in the auditor’s behavior. The interaction of the communications

date of the auditor’s report”. Those rules distinguish between situations in which a client cooperates with the auditor in making all necessary disclosures and situations involving uncooperative clients. Briefly summarize the differing responsibilities that auditors have in those two sets of circumstances. Answer: International Standard of Auditing (ISA) Section 560 Subsequent Events paragraph 15 defined that “Subsequent discovery of facts existing at the date of the auditor’s report” is where the

responsibility of issuing a report; alternately the crucial challenges for an auditor are the liabilities, and presentation of the opinions. Reports an auditor can issue. Initially, defining the five types of reports an auditor has the option of issuing should assist in the comprehension of the severity of the tasks. Namely, the five are the unqualified or unmodified, modified, qualified, adverse opinion, and disclaimer reports; the definitions follow. (1) Unqualified/unmodified audit reports are defined as

According to ICAEW, auditor independence mainly refers to the independence of the external auditor from parties that have an interest in the financial statements of the business being audited. It requires having both integrity and an objective manner to the auditing process. In order for the concept to be deemed effective the auditor needs to carry out their work freely. One of the main purposes of auditing is to increase credibility of the entity’s’ financial statements, as they have expressed their

Introduction: The collapse of small or large organizations in recent years; such as Enron Energy has renewed interest regarding the issue pertaining to fraudulent financial reports, henceforth the conscious publication of misleading financial information by management to stakeholders. This interest sparked debates that highlighted the importance of proper reporting and the role that must be fulfilled by auditors which is yet to be comprehensively determined and agreed upon by industry leaders, regulators

The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements. The Accounting and Auditing Organization for Islamic Financial Institutions established on Safar 1, 1410 Hijri (February 26, 1990) at Algiers and registered in Bahrain on Ramadan 11, 1411 Hijri (March 27, 1991) has so far (April, 2004) set the following Financial Accounting Standards, Auditing Standards, Governance Standards & Code of Ethics for Accountants & Auditors of Islamic Financial Institutions:

CHAPTER AUDIT REPORTS THE AUDIT REPORT WAS TIMELY, BUT AT WHAT COST? 3 LEARNING OBJECTIVES After studying this chapter, you should be able to 3-1 Describe the parts of the standard unqualified audit report. Specify the conditions required to issue the standard unqualified audit report. Understand combined reporting on financial statements and internal control over financial reporting under Section 404 of the Sarbanes–Oxley Act. Describe the five circumstances when an unqualified report with an explanatory

that they are not allowed to use their reports as selling features. They need to explain to their clients what these reports are for, and what their used for. 4. During the trial, Mary K. Cline, a senior auditor for Deloitte, Haskins and Sells stated: a. Should the oversale of lifetime partnerships be classified as a subsequent event? Yes the oversale of lifetime partnerships should be classified as a subsequent event because the audit report was dual dated August 31,1984 and October

case is that in the standard audit reports that go with the financial statements, “the auditor’s responsibility for detecting fraud is not discussed (Mancino, 1997)”. This is occurring because “auditors do not examine every transaction that happens or event and that would mean there is no guarantee that all material misstatements, whether caused by error or fraud could be detected (Mancino, 1997)”. There should be a spot on the audit report that states the auditor’s roles and their limitation into