Unit-5-Auditor's-Report-财经专业英语教程(第四版).ppt

单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,单击此处编辑母版标题样式,Unit 5,Auditors Report,Para 1,The auditors report is a formal opinion,or disclaimer thereof,issued by either an internal auditor or an independent external auditor as a result of an internal or external audit or evaluation performed on a legal entity or subdivision thereof(called an auditee).,The report is subsequently provided to a user(such as an individual,a group of persons,a company,a government,or even the general public,among others)as an assurance service in order for the user to make decisions based on the results of the audit.,Para 2,An auditors report is considered an essential tool when reporting financial information to users,particularly in business.Since many third-party users prefer,or even require financial information to be certified by an independent external auditor,many auditees rely on auditor reports to certify their information in order to attract investors,obtain loans,and improve public appearance.Some have even stated that financial information without an auditors report is essentially worthless for investing purposes.,Para 4,There are four common types of auditors reports,each one presenting a different situation encountered during the auditors work.The four reports are as follows:,1.Unqualified Opinion,Para 5,An opinion is said to be unqualified when the Auditor concludes that the Financial Statements give a true and fair view in accordance with the financial reporting framework used for the preparation and presentation of the Financial Statements.,An Auditor gives a Clean opinion or Unqualified Opinion when he or she does not have any significant reservation in respect of matters contained in the Financial Statements.The most frequent type of report is referred to as the Unqualified Opinion,and is regarded by many as the equivalent of a clean bill of health to a patient,This type of report is issued by an auditor when the financial statements presented are free of material misstatements and are represented fairly in accordance with the Generally Accepted Accounting Principles(GAAP),which in other words means that the companys financial condition,position,and operations are fairly presented in the financial statements.It is the best type of report an auditee may receive from an external auditor.,2.Qualified Opinion report,Para 6,Qualified report is given by the auditor in either of these two cases:,Para 7,1.When the financial statements are materially misstated due to misstatement in one particular account balance,class of transaction or disclosure that does not have pervasive effect on the financial statements.,Detailed below:,Para 10,A Qualified Opinion report is issued when the auditor encountered one of two types of situations which do not comply with generally accepted accounting principles,however the rest of the financial statements are fairly presented.This type of opinion is very similar to an unqualified or clean opinion,but the report states that the financial statements are fairly presented with a certain exception which is otherwise misstated.The two types of situations which would cause an auditor to issue this opinion over the Unqualified opinion are:,Even if this expense is considered material,since the rest of the financial statements do conform with GAAP,then the auditor qualifies the opinion by describing the depreciation misstatement in the report and continues to issue a clean opinion on the rest of the financial statements.,Limitation of scope this type of qualification occurs when the auditor could not audit one or more areas of the financial statements,and although they could not be verified,the rest of the financial statements were audited and they conform to GAAP.Examples of this include an auditor not being able to observe and test a companys inventory of goods.If the auditor audited the rest of the financial statements and is reasonably sure that they conform with GAAP,then the auditor simply states that the financial statements are fairly presented,with the exception of the inventory which could not be audited.,Para 12,The scope paragraph is edited to include the following phrase in the first sentence,so that the user may be immediately aware of the qualification.This placement also informs the user that,except for the qualification,the rest of the audit was performed without qualifications:,3.Adverse Opinion,Para 13,An Adverse Opinion is issued when the auditor determines that the financial statements of an auditee are materially misstated and,when considered as a whole,do not conform with GAAP.It is considered the opposite of an unqualified or clean opinion,essentially stating that the information contained is materially incorrect,unreliable,and inaccurate in order to assess the auditees financial position and results of operations.,Investors,lending institutions,and governments very rarely accept an auditees financial statements if the auditor issued an adverse opinion,and usually request the auditee to correct the financial statements and obtain another audit report.,Para 14,Generally,an adverse opinion is only given if the financial statements pervasively differ from GAAP.,Para 15,The wording of the adverse report is similar to the qualified report.The scope paragraph is modified accordingly and an explanatory paragraph is added to explain the reason for the adverse opinion after the scope paragraph but before the opinion paragraph.However,the most significant change in the adverse report from the qualified report is in the opinion paragraph,where the auditor clearly states that the financial statements are not in accordance with GAAP,which means that they,as a whole,are unreliable,inaccurate,and do not present a fair view of the auditees position and operations.,4.Disclaimer of Opinion report,Para 16,A Disclaimer of Opinion is issued in either of the following cases:,When the auditor is not independent or when there is conflict of interest.,When the limitation on scope is imposed by client,as a result the auditor is unable to obtain sufficient appropriate audit evidence.,When the circumstances indicate substantial problem of going concern in client.,When there are significant uncertainties in the business of client.,Para 17,The audit report changes significantly when there is Disclaimer of opinion.An additional paragraph Basis for Disclaimer is added in audit report which is placed after Scope paragraph and before Opinion paragraph.In Scope paragraph the wording changes to We were engaged to audit the financial statements of XYZ Co.Ltd.from We have audited the financial statements of XYZ Co.Ltd.In Opinion paragraph wording changes to We do not express an opinion on the financial statements of XYZ Co.Ltd.due to situations explained in Basis for Disclaimer paragraph,1.,Para 1,The auditors report is a formal opinion,or disclaimer thereof,issued by either an internal auditor or an independent external auditor as a result of an internal or external audit or evaluation performed on a legal entity or subdivision thereof(called an auditee).这个长句主干是The auditors report is a formal opinion,or disclaimer thereof 意思是说“审计报告是一份正式表达审计意见，或者是无法表示意见的报告”。Thereof是副词后置修饰，就是“它的”，”“相关的”。接着是一个v-ed后置修饰分句，说明审计报告是由内部审计员或外部的独立审计师发布的。As a result of是一个复合介词表示发布此报告的依据是对一个法定实体或实体的一个分支进行内部或外部审计或评估的结果。,3.An auditors report is considered an essential tool when reporting financial information to users,particularly in business.When句是省略状语从句，省略了it is.表示原因。全句的意思是，因为审计报告向用户报告，特别是报告企业的财务信息，因此被认为是不可或缺的工具。,4.,Para 3,The report is only an opinion on whether the information presented is correct and free from material misstatements,whereas all other determinations are left for the user to decide.“an opinion on”是“对一种看法”，即审计报告对所提供的信息是否正确，是否存在虚假陈述意见。Whereas表示对照，即“其它结论让用户自行确定”。,6.,Para 5,because the Auditor can only provide reasonable assurance regarding the Financial Statements 句中的regarding是一个介词，即,in respect of or concerning,。意思是“因为审计人员只能就财务报表提供合理的鉴定”。,7.,Para 7,When the financial statements are materially misstated due to misstatement in one particular account balance,class of transaction or disclosure that does not have pervasive effect on the financial statements.句中的in one particular account balance,class of transaction or disclosure中的one particular也应给修饰后面的class of transaction or disclosure，即对财务报表整体没有普遍影响的某一项特定平衡的帐务，某一笔交易或某一项公开的业务。,8.,Para 9,The report is mostly like a Clear Opinion Report and only includes a paragraph viz.Basis for Qualification after Scope paragraph and before Opinion paragraph.这句涉及到有保留意见的审计报告的几个段落。除了如同无保留意见审计报告的审计范围段落(scope paragraph)，审计结论段落(opinion paragraph)，需要增加一段保留意见依据的段落(basis for qualificaiton)。,9.,Para 11,The wording of the qualified report is very similar to the Unqualified opinion,but an explanatory paragraph is added to explain the reasons for the qualification after the scope paragraph but before the opinion paragraph.这句讲了有保留意见的审计报告还要加上一个解释段落，解释保留的原因。,