Иқтисодий таҳлил ва аудит

TYPES OF AUDITORS' REPORTS

The auditor can issue five types of reports on financial statements: unqualified opinion, unqualified opinion with modified wording, qualified opinion, adverse opinion, or disclaimer of opinion. Importantly, SOX has brought about dramatic changes to the audit process followed by auditors at publicly traded companies. As a result, the auditors' reports for publicly traded and privately held companies are different. For privately held companies, if the financial statements present fairly, in all material respects, an entity's financial position (i.e., the balance sheet), results of operations (the income statement), and cash flows (the statement of cash flows) in conformity with GAAP, and if the audit is performed in accordance with GAAS, then a standard unqualified report can be issued.
The auditor would issue an unqualified report with modified wording in situations such as a change in accounting principle made by the client, when more than one auditor participated in the audit, where there is a question about the client continuing as a going concern for a year from the date of the balance sheet, or when the auditor wishes to highlight a specific matter. The modification does not affect the opinion.
Auditors would issue a qualified opinion in situations where they view a departure from GAAP as being material, but not pervasive or highly material relative to the entire set of financial statements; or when the auditors have not been able to obtain sufficient competent evidence pertaining to a material, but not pervasive or highly material, part of the financial statements. The auditors must add an explanatory paragraph before the opinion paragraph describing the reason for the qualification and then qualify the opinion paragraph. In the case of inadequate evidence, which is referred to as a scope limitation, the second paragraph of the report would also be modified.
If in the auditor's judgment, pervasive or highly material deviation(s) from GAAP exist and the auditee fails to adjust the financial statements to the satisfaction of the auditor, then the auditor must express an adverse opinion. In this condition, the auditor expresses an opinion that the financial statements taken as a whole do not present fairly the financial position, results of operations, and cash flows of the company in accordance with GAAP. Adverse opinions are rarely, if ever seen in practice.
A disclaimer of opinion, which means that the auditor provides no opinion, is issued when the scope limitation (typically lack of evidence regarding financial statement assertions) is so pervasive or highly material that the auditor cannot conclude as to the fairness of the financial statements, taken as a whole. A disclaimer is also issued when the auditor lacks independence from the company being audited. Disclaiming an opinion is also permitted, but not required, in conditions of major uncertainty about the company's ability to continue as a going concern for a year following the date of the financial statements.
For publicly traded companies that report to the SEC, the guidelines issued by the PCAOB must be followed by auditors. Under Section 404 of the law, the audit firms are required to audit both the internal control system and the financial statements on an annual basis. As a result, the auditor report for publicly traded companies has changed.
see also Accounting; Audit Committees; Government Auditing Standards; Performance Audits