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ty with GAAP. Anything regarding internal control, records, authorization, process, policies is the responsibility of management. The independent auditor must have professional qualifications and an adequate education to conduct an audit. The independent auditor must also comply with the professional standards set for the Accounting profession. The American Institute of Certified Public Accountants (AICPA) sets standards and regulations for Certified Public Accountants providing professional services. The mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation (www.sec.gov, 2010). The SEC protects investors and the public by promoting transparency in financial statements. Another body of the Accounting profession is the Financial Accounting Standards Board (FASB) which mission is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports. That mission is accomplished through a comprehensive and independent process that encourages broad participation, objectively considers all stakeholder views, and is subject to oversight by the Financial Accounting Foundation’s Board of Trustees (www.fasb.org). It is the independent auditor responsibility to comply with the rulings set forth by the public accounting profession bodies.

The audit report is the product of an examination of a firm accounting records by a certified auditor. It is a test of business financial statements for compliance with Generally Accepted Accounting Principles (GAAP). The current audit report has three paragraphs. An introductory paragraph which clearly states that the auditor is producing a report on the financial statement and not the accounting records, a scope paragraph which describes the audit, conformity with generally accepted auditing standards (GAAS), and provide assurance that the financial statements are free of material misstatement. The last paragraph is the opinion paragraph where the auditor expresses an opinion without guarantying or certifying that the financial statements are correct. There are a few audit reports that can be issued on a company financial statement by auditors. An unqualified report, an explanatory language added to the unqualified report, a qualified report, and adverse opinion, or a disclaimer of opinion can be issued. The report that every businesses would want is the unqualified report. Au unqualified report means that the statements are not misleading and that they were produce in conformity with GAAP. An explanatory language is often added to the unqualified opinion if there is need to emphasize a matter or there is inconsistency in applying the accounting principles for example. An example of an explanatory language that could be added to the unqualified auditor report is the following:

The accompanying financial statements have been prepared assuming that ABC Company will continue as a going concern. As discussed in Note 1 to the financial statements, ABC Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about the entity's ability to continue as a going concern. Management's plans in rega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。