Chapter Eighteen Reports on Audited Financial Statements . The Standard Audit Report with an Unmodified Opinion. The standard audit report with an unmodified opinion is issued when the financial statements conform to the applicable financial reporting framework. Nine Elements Report title
Reports on Audited Financial Statements
The standard audit report with an unmodified opinion is issued when the financial statements conform to the applicable financial reporting framework.
An emphasis of matter paragraph does not affect the auditor’s opinion
because it can only be included in the audit report if the matter is presented or disclosed in the financial statements in accordance with the applicable financial reporting framework.
An other matters paragraph does not affect the auditor’s opinion
because it relates to matters other than those required to be presented or disclosed in the financial statements.
The matter is both unusual and of fundamental importance to the user’s understanding of the financial statements.
Results from an inability to obtain sufficient appropriate evidence about some component of the financial statements.
Results when financial statements are materially affected by a departure from the applicable financial reporting framework.Conditions of Modification
Departure from the Applicable Financial Reporting Framework
Reports on comparatives.
Corresponding figures for the prior period are an integral part of the current period financial statements and are intended to be read in conjunction with the amounts of the current period.
Comparative financialstatements are considered separate financial statements and are included for comparison with the financial statements of the current period.
The auditor has no responsibility beyond the financial information contained in the report, and he or she has no obligation to perform any audit procedures to corroborate the other information. However, the auditor is required to read the other information and consider whether it is consistent with the information contained in the audited financial statements.
Components of financial statements.
Financial statements prepared on an other comprehensive basis of accounting.
Compliance with contractual agreements related to financial statements.
In some situations an auditor may be engaged to audit a single financial statement, specified elements, accounts, or items of the financial statements.
Financial reporting framework such as IFRSs
Other comprehensive basis of accounting (OCBOA)
Basis of Accounting
Basis of accounting prescribed by a contract or agreement