Audit Reporting Model

Current Audit Reporting Model U.S. vs. International Standards

Due to human nature, the need for an auditor will always be prevalent. The external auditor provides a report on the condition of the financial statements. This report is an opinion, not a certification. The auditor’s report requires the auditor to maintain independence throughout the entire duration of the audit.

The auditor’s report will state that proper regulations provided by GAAS were followed in the examination of the entity and express an opinion on the client’s financial statements stating that they are or are not in accordance with GAAP.

The auditors report should include:

* Introductory paragraph

* Scope paragraph

* Explanatory paragraph

* Opinion paragraph

* Signature

* City and State or Country

* Date

U.S. Auditor’s Current Report Model

AU 508.08 provides U.S. standards for the current auditor’s report model. The standard auditor’s report is to begin with an introductory (opening) paragraph, which distinguishes the audited financial statements. Following this, the auditor will include a scope paragraph, which describes the nature of the performed audit. Finally, the report contains the opinion paragraph which expresses’ the auditor’s opinion. The standard report contains an unqualified opinion. An unqualified opinion states that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the entity in conformity with GAAP. The report is to be similar to the following:

a. A title that includes the word independent

b. A statement that the financial statements identified in the report were audited

c. A statement that the financial statements are the responsibility of the Company’s management and that the auditor’s responsibility is to express an opinion on the financial statements based on his or her audit

d. A statement that the audit was conducted in...