CH03Reports on Audited Financial statements(审计学,英文版)

Association with financial statements
• A report must be rendered in all cases where a PA`s NAME is Association with financial statements.
• Reason: an audit has been conducted and that “everything is ok”
1.LEVELS OF Assurance
Audit assurance
standard unqualified report
Negative assurance
Review Report
No assurance
Denial of opinion
Audit review compilation
1.LEVELS OF Assurance
CHAPTER 3
• Reports on Audited Financial statements 《独立审计具体准则第7号------审 计报告》 (2003年4月14日修订）
Chief Points
• Standard Unqualified Report and Variations • Audit Report Reservations • Unqualified Opinion with Explanation or Modification
Standard Unqualified Audit Report
Clean Opinion Standard Unqualified opinion
Unqualified opinion with explanation
1)Unqualified opinion 2)Qualified opinion 3)Adverse opinion 4)Denial of opinion
3.1. GAAP departure reports Materiality 3.2. Scope limitation reports Materiality 3.3. Effects of lack of independence Resign or not accept an audit
3.1. GAAP departure reports Materiality
（2）Qualified Report, except for p74
[nature of the GAAP departure explained in the report] In my opinion, Except for the effects of the failure to [the departure] as described in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the company as at _____, 2002, and the results of its operations and the cash flows for the year then ended in accordance with generally accepted accounting principles.
The use of negative
• A.prohibit: Audited financial statements Too WEAK a conclusion for the audit effort involved. • B.Permitted: (1)Reviews of nonfinancial statements. ICS (2)Reviews of unaudited financial statements.
Audit report reservations
2.1 Standard Unqualified Report
Introductory, scope, opinion paragraph
1、我的审计符合公认审计准则
trained and proficient, independent，
Due care, planned and supervised,
• (1)Highest level----- Positive assurance • standard unqualified report “In our opinion, the accompanying FS present fairly, in all material respects.” • (2)Middle level----Negative assurance • “Based on my review, nothing has come to my attention that causes me to believe that these financial statements are not, in all respects,in accordance with GAAP. ”
（3）Adverse Report
• The GAAP Departure • （1）More than material：足够严重以至于 影响到财务报表的正确理解（overshadow） • （2）影响面广，影响到很多账户和相关的 报表 • 出具否定意见的审计报告
• Exhibit3-1, P70
Levels
Assurance
Audit
Review Co mpl ia tion
sentence
Highes Positive Standard t Unqualifie d report Middle Negativ e Lowest No

Non-Fs,
保留意见的审计报告
• 第一段同无保留意见的审计报告，此略。 • 除下段所述事项外，我们按照中国注册会 计师独立审计准则计划和实施审计工作， 以合理确信会计报表是否不存在重大错报。 审计工作包括在抽查的基础上检查支持会 计报表金额和披露的证据，评价管理当局 在编制会计报表时采用的会计政策和作出 的重大会计估计，以及评价会计报表的整 体反映。我们相信，我们的审计工作为发 表意见提供了合理的基础。
(1)immaterial, unqualified (2)material enough, qualified: except for Scope--Reservation Paragraph--opinion (3)A: more than material adverse opinion (super-material) B: pervasive adverse opinion Scope--Reservation Paragraph--opinion because------do not present fairly---
2.2 Reservation in the Standard Unqualified Report
• 1.departure from GAAP Materiality • 2.scope limitation Materiality • ck independence
3. Audit report reservation
保留意见的审计报告
• 三维公司 2003年 12 月 31 日的应收账款余额 X万元，占资产总额的X%。由于三维公司 未能提供债务人地址，我们无法实施函证， 且无法实施其他审计程序，以获取充分、 适当的审计证据。 • 我们认为，除了未能实施函证可能产生的 影响外，上述会计报表符合国家颁布的企 业会计准则和《企业会计制度》的规定， 在所有重大方面公允反映了三维公司 2003 年 12 月 31 日的财务状况以及 2003 年度的经 营成果和现金流量。
Interim financial information, FS to Underwriters
1、LEVELS OF Assurance
• (3)Lowest level----No assurance • Audit Fs: Denial of opinion • Compilation:Disclaimer of opinion • “ I am unable to express an opinion whether these information financial statements are presented fairly in accordance with GAAP.
understanding IC, S&A evidence
2、你的报表符合公认会计准则
Standard Unqualified Report
I have audited the balance sheet of _____ as at _____, 20__, and the statements of income, retained earnings and cash flow for the year then ended. These financial statements are the responsibility of the company’s management. My responsibility is to express an opinion on the financial statements based on my audit.. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform an 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. In my opinion, these financial statements present fairly in all material respects the financial position of the company as at _____, 20__, and the results of its operations and the cash flows for the year then ended in accordance with generally accepted accounting principles.
In our opinion, present fairly nothing has come to my attention I am unable to express an opinion

Denial of opinion
Unaudi ted Fs
Denial of opБайду номын сангаасnion


2.Standard Unqualified Report and Variations