Because of the even more limited scope of compilation procedures, the CPA’s
report will not express an opinion
or provide any assurance regarding the financial statements. … The CPA expresses no assurance about the accuracy of the financial statements presented.
When performing a review of financial statements The accountant is required to?
In a financial statement review, the accountant performs those procedures necessary to provide a reasonable basis for obtaining limited assurance that no material changes are needed to
bring the financial statements into compliance with the applicable financial reporting framework
.
Does an accountant have a duty to correct its audited opinions?
Kletz, the responsibility to correct an audit report that was incorrect at the time of
issuance is a legal as well as a professional obligation
. … (PMM) had reported on financial statements it later discovered were incorrect at the time they were issued. PMM argued their duty ended once the audit report was issued.
Does a review express an opinion?
A review includes primarily applying analytical procedures to management’s financial data and making inquiries of management. A review is substantially less in scope than an audit, the objective of which is the expression of
an opinion
regarding the financial statements as a whole.
WHO Issues Qualified opinion financial statements?
A qualified opinion is a statement issued in
an auditor’s report
that accompanies a company’s audited financial statements.
How much should a reviewed financial statement Cost?
Reviewed financial statements generally range in costs from
$1,200 – $5,000
based on the size and complexity of your company and can take up to 2 weeks to complete.
Does an audit guarantee a fair presentation of a company’s financial statements?
Role of audit
The benefit of an audit is that it
provides assurance that management has presented a ‘true and fair’ view of a company’s financial performance and position
.
Can a CPA be held liable?
Statutory liability
: CPAs have statutory liability under both federal and state securities laws. Statutory liability provides cover for defense costs, fines and penalties charged against the firm. Under statutory law, an auditor can be held civilly or criminally liable.
What are the circumstances where professional accountants may disclose confidential information?
The Code provides for three circumstances where professional accountants are required, or may be required, to disclose confidential information:
• Disclosure is permitted by law and is authorized by the client or employer
; • Disclosure is required by law; • There is a professional duty or right to disclose when not …
Do accountants have a duty of care?
An accountant will almost always owe a duty of care to his or her own client
, but that duty is likely to be coextensive with his or her contractual duty. … As a result, practitioners preparing financial reports on members of regulatory bodies, for example the Law Society, will owe a duty of care to such bodies.
Does a review give an opinion?
Independent Accountants’ Review Report
A review is substantially less in scope than an audit, the objective of which is the expression of
an opinion
regarding the financial statements as a whole. Accordingly, we do not express such an opinion.
Which case would an unmodified opinion not be appropriate?
In which case would an unmodified opinion not be appropriate?
A material related party transaction has occurred and has been accounted for appropriately
, but it has not been adequately disclosed in the financial statements.
What is an example of an internal independent review?
These include
financial transaction matching
, a physical inventory count, audit trail reviews and recalculating previously reconciled financial statements, such as last month’s unadjusted and adjusted trial balances or last month’s bank reconciliation.
What is a clean opinion for an audit?
An unqualified opinion
is also known as a clean opinion. The auditor reports an unqualified opinion if the financial statements are presumed to be free from material misstatements.
Is going concern a qualified opinion?
The cleanest, most desirable type of audit opinion is an “unqualified” one. … When uncertainties exist regarding the going concern assumption,
the auditor will typically issue a “qualified” opinion
and disclose the nature of these uncertainties in the footnotes.
Who reports to auditors?
7. Auditors report on the financial statements to
shareholders
.
