A1 M4 Unmodified or Unqualified Opinion

title

indicates that it is a report of an independent auditor

addressee

report is addressed as required by the circumstances of the engagement

auditor’s opinion

• entity whose financial statements have been audited

• statement that the financials have been audited

• title of each statement that the financial statements comprise and reference to the notes

• dates or periods covered by each financial statement that the financial statements comprise

• statement that in the auditor's opinion, the accompanying financial statements present fairly, financial position of the entity as of the balance sheet date and results of operations and its cash flows for the period then ended

• identificantion of the applicable financial reporting framework and its origin

basis for opinion

• statement that the audit was conducted in accordance with generally accepted auditing standards and identifies the united states of america as the country of origin of those standards

• reference to the section of the auditor's report that describes auditor responsibilities under GAAS

• statement that the auditor is required to be independent and to meet other relevant ethical requirements

• statement as to whether the auditor believes that the evidence obtained is sufficent and appropraite to provide a basis for the auditor's opinion

substantial doubt about the entity’s ability to continue as a going concern

• draws attention to the note in the financial statements that discloses the conditions identified

• states that the auditor’s opinion is not modified with respect to the matter

key audit matters

• describe each key audit matter, using an appropriate subheading

• why the matter was considered to be one of the most significant in the audit

• how the matter was addressed in the audit

responsibilities of management for the financial statements

• an explanation that management is responsible for the preparation and fair presentation of the financial statements in accordance with the framework

• statement that this responsibolity includes design, implementation, and maintenance of internal control

• when required, evaluation of whether there are conditions or events that raise substantial doubt about going concern

auditor’s responsibilities for the audit of financial statements

• statement that the objectives of the auditor are to obtain reasonable assurance about whetherthe financial statements are free from material misstatement and issue an auditor's report that includes opinion

• statement that reasonable assurance is a high level of assurance but is not absolute assurance

• statement that the risk of not detecting a material misstatement resulting from fraud higher than one resulting from error

• statement that misstatementes are considered material if there is substantial likelihood individually or in the aggregate

other information

• statement that management is responsible for the other information

• identification of the other information and a statement that the other information does not include the financial statements and auditor's report

• statement that the auditor's opinion does not cover the other information and the auditor does not express any opinion or form of assurance

• statement that the auditor is responsible to read the other information and consider whether a material inconsistency exists 

• statement that if the auditor concludes that an uncorrected material misstatement of the other information exists, auditor is requried to describe in report

• if auditor has concluded that an uncorrected material misstatement of the other information exists, statement that the auditor has concluded that an uncorrected material misstatement of the other information exists and a description of it in the report

other reporting responsibilities

if auditor addresses other reporting responsibilities in the auditor's reporit ina ddition to GAAS, these other reporting responsibilities should be addressed in a separate section

signature of the auditor

manual or printed signature of the auditor’s firm

auditor’s address

name the city and state where the auditor’s report is issued

date of the auditor’s report

dated no earlier than the date on which the auditor has obtained sufficient appropraite audit evidece

unmodified audit opinion - GAAS

basis for opinion and auditor’s responsibilities paragraphs

unmodified audit opinion - GAAP

management’s responsibility and opinion paragraphs

key audit matters (KAMs)

matters that were of most significance in the audit of the financial statements of the current period

items that required significant auditor attention

• areas with a higher assessed risk of material misstatement

• areas requiring significant auditor and management judgment, including accounting estimates subject to a high degree of estimation uncertainty

• significant events or transactions

KAM reporting

• describe each key audit matter using an appropriate subheading

• why the matter was considered to be one of the most significant in the audit

• how the matter was addressed in the audit

responsibilities of management for the financial statements

• an explanation that management is responsible for the preparation and fair presentation of the financial statements in accordance with the framework

• statement that this responsibolity includes design, implementation, and maintenance of internal control

• when required, evaluation of whether there are conditions or events that raise substantial doubt about going concern

auditor’s responsibilities for the audit of financial statements

• statement that the objectives of the auditor are to obtain reasonable assurance about whetherthe financial statements are free from material misstatement and issue an auditor's report that includes opinion

• statement that reasonable assurance is a high level of assurance but is not absolute assurance

• statement that the risk of not detecting a material misstatement resulting from fraud higher than one resulting from error

• statement that misstatementes are considered material if there is substantial likelihood individually or in the aggregate

documentation of KAM’s

• auditor’s determination that there were no KAMs

• auditor’s decision not to communicate a matter determined to be a KAM

unqualified report should be communicated

in writing

auditor should evaluate the statements to ensure

• they are informative of matters that may affect their use or ability to be understood

• the accounting principles selected and applied are appropriate

• transactions and events are appropriately recongized, measured, and disclosed

critical audit matters

include discussion of any CAMs arising from the current period’s audit

signature, tenure, location

signature of audit firm, statement containing the year the auditor began serving consecutively, city and state from which the report was issued

CAM communicated or required to be communicated that

• relate to accounts or disclosures that are material to financial statements

• involved especially challenging, subjective, or complex auditor judgement

for each CAM, identified, the auditor should include

• Identification of the CAM

• description of the Principal considerations that led the auditor to determine that the matter was a CAM

• description of how the CAM was Addressed in the audit

• reference to the relevant financial statement accounts or Disclosures

documentation of CAMs

• communicated or required to be communicated to the audit committee

• relates to accounts or disclosures that are material to the financial statements

Reports on Internal Control over Financial Reporting - Issuer Only - Basis of Opinion 

• company is not required to have nor was engaged to perform an audit on its internal control over financial reporting

• auditor is required to obtain an understanding of internal control over financial reporiting but not for the purpose of expressing an opinion on the effectiveness of the company's internal control

• auditor expresses no such opinion

unqualified opinion - issuer - PCAOB AS

basis for opinion section

unqualified opinion - issuer - GAAP

opinion on the financial statements section

form AP includes

• name of the firm

• name of the issuer whose financial statements are audited

• date of the audit report

• end date of the most recent period's financial statements identified in the audit report

• name of the engagement partner on the most recent period's audit and their current and prior ID number

• city and state of the office of the firm issuing the report

• whether the audit is dual-dated

• whether other accounting firms participated in the audit

• whether the firm divided responsibility for the audit

• signature of partner or authorized officer

AP stands for

Audit Participants

why does form AP need to be issued

must file it with the PCAOB for each audit report issued

when does form AP need to be filed

by the 35th day after the audit report is first field in a document with the SEC or within 10 days if the audit report is included in a registration statement

what needs to be disclosed if the auditor decided to provide information about the engagement partner

• engagement partner's full name

• for other accounting firms participaiting in the audit, statement that the auditor is responsible for the audits or audit procedires performed by the other public accounting firms 

• for other accounting firms to which the firm makes reference and to which responsibility for the audit is divided