[工学]ACCTchap02.ppt

* Part I Once an audit is complete, the auditors present their conclusions in a report that includes an audit opinion. If auditors are satisfied that the financial statements are “fair”, they issue an unqualified audit report. An unqualified audit report indicates that the financial statements are useful and that creditors and investors can trust what is reported. Part II The most negative report an auditor can issue is an adverse opinion. An adverse opinion means that one or more departures from Generally Accepted Accounting Principles are so material the financial statements do not present a fair picture of the company’s status. Part III A qualified opinion falls between an unqualified and an adverse opinion. A qualified opinion means that for the most part, the company’s financial statements are in compliance with Generally Accepted Accounting Principles, but the auditors have reservations about something in the statements. The auditor’s report explains why the opinion is qualified. Part IV If an auditor is unable to perform the audit procedures necessary to determine whether the statements are prepared in accordance with Generally Accepted Accounting Principles, the auditor cannot issue an opinion on the financial statements. Instead, the auditor issues a disclaimer of audit opinion. A disclaimer is neither negative nor positive. It simply means that the auditor is unable to obtain enough information to confirm compliance with Generally Accepted Accounting Principles. * In this chapter, we learned more about accrual accounting. We also learned about auditors and their role in providing audits that are trustworthy and credible. * Part I Here is a summary of the transactions we just looked at for Conner Consultants. Take a few minutes and make sure you understand each transaction’s impact on the financial statements model. Part II The amounts in this summary are color coded as follows: Data in green appear on the statement of cash flows. Data