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anges because the independent auditor report opinion of 1988 is still the one being used by auditors today. Major changes to the report happened in 1988. The standard report moved from a two paragraphs to a three paragraphs audit report. The new paragraph being added laid the responsibility of the parties involved in the audit process (i.e. auditors and management). The new report stressed that the financial statements were the responsibility and product of the organization management and not the auditors. Precise information pertaining to the audit firm responsibility and the limitations of the audit function were now included in the scope paragraph. The new report of 1988 is definitely more detailed in an effort to reduce the “expectation gap” by clearly defining what is involved in the audit process and explaining the difference between management and auditors responsibility. The expectation gap in accounting is the gap between an auditor actual standard of performance and the more rigorous public expectation of what an auditors performance should be (Ventureline, 2010).The purpose of the changes of 1988 was to aid the public to better understand the audit process and the responsibilities of the parties involved.

We have audited the accompanying balance sheets of X Company as of December 31, 19X2 and 19X1, and the related statements of income, retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express and opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material aspects, the financial position of X Company as of [at] December 31, 19X2 and 19X1, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles。

There will always be a need of an independent auditor because not all facts concerning financials are properly and accurately presented by businesses. To better understand the auditor’s report, one must know or have a good knowledge of the role, responsibilities, and functions of the independent auditor. As discussed in AU Section 110, the auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud (AICPA.ORG, 2010). Financial statements are always the responsibility of management. It is the auditor responsibility to express an opinion on the statements and that the statements have been prepared in conformi本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。