AUDITING ANG ASSURANCE THE REPORT SHALL PRESENT WHETHER IT 1. USE THE GAAP, it must be explicitly stated. STANDARD REPORTING NO.2 1. The audit report shall have explicit if only if kapag hindi nagagamit or naaply GAAP year by year. If not constantly, report the reasons and observations why the companies did not comply with certain principles. EXAMPLE: UNG PAGTRANSFER NG OCI COMPONENTS SA RETAINED EARNINGS Informative disclosure – disclosures are also implicit in audit report, doesn’t require to sabihin pa na may notes to financial statements chuchu ek ek. It is automatic na kasi na may notes of financial statements, unless may nakita kang hindi dinisclose na dapat idisclose. Audit report number 4 Fair ba, apply bas a standards. You will only express an opinion on the basis of the evidences you have gathered. Unmodified opinion – standard report or unqualified opinion. The companies financial statement is presented fairly. Walang nakita na information na magsasabi na ang fs ay hindi reliable. True and fair view of transactio pertaining to company. Nakalagay sa unang paragraph “stated fairly in all materials expect and GAAP” (kapag reliable or favorable) Kapag hindi reliable or misstated –mag iissue ka ng modified opinion. Tignan mo epekto ng isang account makakaapekto sa ibang account. See the degree of the effect. Minmomoidify mo ung standard. There are some exceptions that will make you believe that fs migh not be presented with gaap. (UNFAVORABLE) Qualified opinion - MATERIALLY MISSTATED BUT NOT PERVASIVE. Hindi kalat kalat ung effect, hindi maapektuhan ung isang account sa isa pa. HINDI MO SASABIHING “I am issuing qualified opinion” (implicit) - Hindi nakaaccumulate ng audit evidence, pero hindi materially misstated or not pervasive but instead sabihin mo ay disclaimer of opinion. Adverse Opinion - MATERIALLY MISSTATED AND PERVASIVE. So matindi to, naapektuhan ung ibang account. Pinaka-malala. If you are the user, don’t look at the fs but on the opinion of the auditor. Disclaimer of Opinion – because I was not able to get or accumulate sufficient and appropriate evidences. Kasi pinigilan ka or fortuitous event. Pero tignan mo kung material ba or hindi, pervasive ba or hindi. Topic number 2
