Audit Report
Chapter 11
The auditor’s report for the City of Smithville should follow the wording of Illustration 11-2.
An unqualified report similar to shown in Illustration 11-2 appears to be appropriate for the year December 31, 2014. Nevertheless, some students may have issues a “qualified” report for some perceived reason. If so, it should use the wording specified in audit guide, although most probably will not use the exact wording specified. If not, this will provide you with an opportunity to explain to the student why the specified report wording is critical to an auditor.
An unqualified audit report on the City of Smithville should appear as follows:
The Honorable Mayor, City Council, and City Manager, City of Smithville
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Smithville(State),as of and for the year ended December 31, 2014, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City Smithville’s management. Our responsibility is to express an opinion on these financial statements based on our audit report.
We conducted our audit in accordance with auditing standards generally accepted in the United Sates of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free material misstatement an audit includes examining, of a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimate made by management, as well as evaluating the overall financial statement presentation. We believe that out audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in
The auditor’s report for the City of Smithville should follow the wording of Illustration 11-2.
An unqualified report similar to shown in Illustration 11-2 appears to be appropriate for the year December 31, 2014. Nevertheless, some students may have issues a “qualified” report for some perceived reason. If so, it should use the wording specified in audit guide, although most probably will not use the exact wording specified. If not, this will provide you with an opportunity to explain to the student why the specified report wording is critical to an auditor.
An unqualified audit report on the City of Smithville should appear as follows:
The Honorable Mayor, City Council, and City Manager, City of Smithville
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Smithville(State),as of and for the year ended December 31, 2014, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City Smithville’s management. Our responsibility is to express an opinion on these financial statements based on our audit report.
We conducted our audit in accordance with auditing standards generally accepted in the United Sates of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free material misstatement an audit includes examining, of a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimate made by management, as well as evaluating the overall financial statement presentation. We believe that out audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in