Report of Independent Registered Public Accounting Firm Flashcards

Vocabulary flashcards based on the Report of Independent Registered Public Accounting Firm for X Company.

Financial statements

The balance sheets of X Company as of December 31, 20X7 and 20X6, the related statements of income, comprehensive income, stockholders' equity, and cash flows for each of the three years ended December 31, 20X7, and the related notes [and schedules].

PCAOB

Public Company Accounting Oversight Board (United States), the organization whose standards governed the audit of the financial statements and internal control over financial reporting.

COSO

Committee of Sponsoring Organizations of the Treadway Commission, which issued the Internal Control-Integrated Framework used to audit the Company's internal control over financial reporting as of December 31, 20X7.

Management's Responsibility

The responsibility for the preparation and presentation of X Company's financial statements, as stated in the Basis for Opinion.

Auditor's Responsibility

The responsibility to express an opinion on X Company's financial statements based on audits performed in accordance with PCAOB standards.

Reasonable Assurance

The assurance obtained by planning and performing the audit to assess whether the financial statements are free of material misstatement, whether due to error or fraud.

Critical Audit Matters

Matters arising from the current period audit communicated or required to be communicated to the audit committee that relate to material accounts or disclosures and involved especially challenging, subjective, or complex judgments.

Blue, Gray & Company

The firm of Certified Public Accountants located in Los Angeles, California, that authored the report and has served as X Company's auditor since 20X0.

February 12, 20X8

The date of the audit report and the date of the report expressing an unqualified opinion on the Company's internal control over financial reporting.