Unit 9

unit 9

16-38,

A. The CPA would create a compilation report with a section that details the reasons including a paragraph for a disclaimer for their opinion

B. The CPA must describe the services that were performed. It is important to include details for the reason for the review and a disclaimer of opinion

C. No report

D. The auditor’s report should note the reasons for the audit along with notes verifying the financial statements were done fairly. There should be a disclaimer of opinion and suggestions for the control passeninternal control process the audit along with.

E. The auditor should create a new audit report for the financial statements along with any notes

16-40,

1. There is no title

2. The cash flow statements are the noted as the statement of change

3. The wording is wrong – missing the in accordance with

4. The auditor is not clearly identified

5. The lease was recorded wrong

6. The auditor did not get to use all the necessary information because the client with held important data

7. The report date should be the date is finalized

8. The phrase in all material respects should follow present fairly9.

9. The auditors signature

10. There should be an accounting firm update.

16-41

Another table will help with this one so you’re sure to answer each part of the question:

| |Type of Opinion Expressed: unqualified,|Why is this opinion the appropriate choice? |If an explanation is needed, |

| |qualified, adverse, disclaimer, or | |should it precede or follow |

| |unqualified with explanation (fill out | |the opinion paragraph? |

| |last column) | | |

|A |Unqualified |Because there was enough...