For all the work performed on the audit, the one thing that the public sees is the auditor’s report. So we need to make sure that the opinion is correct. With the effective date of SAS 134, the auditor’s report underwent significant changes. This session will cover the format of the revised auditor’s report and discuss the responsibilities of both management and the auditors which are now explicitly identified in the revised report. The session will also cover other conforming changes made to the auditor’s report with the effective date of SAS 137-140. Lastly, the session will address both when, and how, the auditor would issue qualified and adverse opinions and when the auditor would disclaim an opinion. The session will also address when the auditor is required to add either an Emphasis of Matter or Other Matter paragraph and its contents. (Please Note: This module is part of Surgent's Audit Skills Training: Level 4.)
Learning Objectives
- Identify key changes to auditor’s reporting with the effective dates of SASs 134-140
- Identify circumstances when the auditor would issue an other than unqualified report
- Recall when an auditor would issue a qualified auditor’s opinion and its wording
- Recall the appropriate wording and location of emphasis of matter and Other Matter paragraphs
Major Topics
- Revised format of audit opinion under SAS 134
- Additional responsibilities of both management and the auditors under SAS 134
- Additional requirements related to SASs 135-140
- Qualified auditor reports, their wording, and when the auditor would issue one of them
- Circumstances requiring the addition of Emphasis of Matter and Other Matter paragraphs to the standard unqualified audit report
