Clients:

Period:
Subjects: AUDITORS REPORTS FINANCIAL STATEMENTS

Objectives:
A. Issue a written refort that expresses an unqualifies opion on the
financial statements and describes the basis for the opinion, and

B. Communicate in the auditors unqualified report critical audit

matters, when required, reletaing to the audit of the financial
statements or stte that the auditors determined that there are no
critical matters.

AUDIT PROCEDURES PREPARED BY: WORKING PAPER REF.

1. Communication regarding critical audit matters relating to the
2. Other
audit expalantory
of the currents periodslanguage, as appropriate
financial statements in the
unless such
3. Informationdoabout
circumstances.
requirements certain audit participants, if the auditors
not apply;
4. The auditors
decides to provide report
thismust be adresses
information in the to auditors
the stakeholders
refort and
5.
theThe
boardfirstofsection
directors of the auditors reports
or, equivalents must include
for companies notthe
6. The
section name
title of
and the company
elements.
organized as corporation. whose fianncial statements were
7. A
auditedstatements identifying each fianncial statement and any
8. The schedules
related date of, orthat period hascovered by, each financial statement
been audited
9.
andArelated
statement indicating
schedule, that the financial
if applicable, identified statements, including
in the report;
10. e. An opinion
the related notes and thatany therelated
financial statementsidentified
schedule(s), present fairly,
and in
11.
all The second
material
collectively section
respects,
referred offinancial
thein
to the report
the auditor's
positionreport
as the mustcompany
of the
financial include theof
as
statements,
a.
theA
sectionstatement
werebalancetitle
audited; that
"Basis
sheet the
for financial
Opinion" statements
and the are
following
anddate and the results of its operations and its the responsibility
elements:
b.
of
cashA
thestatement
company's
flows that
for the the auditor's
management;
period responsibility
then ended in conformity is to with
express
the an
c. A statement
opinion
applicable the that
on financial the
financial audit was
statements
reporting conducted
based on
framework. Theintheaccordance
audit; should
opinion with
d.
the A statement
standards ofthat
the PCAOB
PCAOB; standards
also include an identification of the applicable financial require that the auditor
12.
plan Performing
and perform
reporting procedures
framework. the audit to obtainassess reasonable
the risks ofassurance
material about
13. Examining,
misstatement of onthe a test
financialbasis, evidence
statements,
whether the financial statements are free of material regarding
whether the to
due amounts
error or
14.
and Evaluating
fraud,disclosures the
and performing
misstatement, accounting
in the financial
whether procedures principles
due to errorstatements;
that used and significant
respond to those risks;
or fraud;
15. Evaluating
estimates madethe by overall
management; presentation
and of the financial
16. A statement that the auditor believes that the audit provides
statements;
17.A statement
a reasonable thatfor
basis thethe auditor is a opinion;
auditor's public accounting
and firm
registered with the PCAOB (United States) and is required to be
independent with respect to the company in accordance with the
U.S. federal securities laws and the applicable rules and
regulations of the SEC and the PCAOB.
18. The signature of the auditor's firm;
19.. A statement containing the year the auditor began serving
20.
(2) The auditor
consecutively
(1) involved
relates asmust
toespecially
accounts determine
the company's
challenging, whether
auditor;
or disclosures thatthere
are are
subjective, any critical
or complex
material to the
auditor judgment.
audit matters
financial Critical
in the audit
statements audit matters are not
and of the current period's financiala substitute for
the auditor'sAdeparture
statements. critical auditfrom an unqualified
matter is any matter opinion
arising(i.e.,
froma the
qualified
21. opinion,
auditInofdetermining
the financial adverse
whether opinion,
statementsa matter or disclaimer
that involved especially or on
was communicatedof opinion
the
a. financial
The auditor's
challenging, statements
assessment as described
ofto
thethe
risks in AS 3105).
of committee
material
required to besubjective,
communicated or complex auditor
audit judgment,and thethat:
b. The degree
shouldof
misstatement,
auditor auditor
including
take judgmentalone
significant
into account, related
risks; to combination,
or in areas in the the
c. The nature
financial
following and timing
statements
factors, asthat ofassignificant
wellinvolved
other the unusual
application
factors transactions
specific of and
to significant
the audit:
d.
the The
extent
judgment degree of auditor
of estimation
or audit effortbysubjectivity
and judgment
management, in related
applying to audit
including these
estimates
e. Thesignificant
proceduresnature
transactions;
with to and extent
address theofmatter
measurement audit effort
or required tothe
in evaluating
uncertainty; address
resultsthe
of
f. Theprocedures;
matter,
those nature
includingof audit evidence
the extent obtained regarding
of specialized the matter.
skill or knowledge
22.
needed Foror each
the critical
nature of audit matter communicated
consultations in the auditor's
outside the engagement
a. Identify
report the the
auditorcritical
must:
team regarding the matter; and audit matter;
b. Describe the principal considerations that led the auditor to
c. Describethat
determine howthethematter
critical
is aaudit matter
critical auditwas addressed in the
matter;
d. Refer
audit; andto the relevant financial statement accounts or
23. The auditor
disclosures that may
relateemphasize a matter
to the critical auditregarding
matter. the financial
a. Significant
statements transactions,
in the including
auditor's report significant
("emphasis transactions
paragraph"). The
b.
withUnusually
related
following important
areparties; subsequent events, such as
examples of matters, among others, that might be a catastrophe
c. Accounting
that has had,inormatters,
emphasized continues
the other
auditor's than those
toreport
have, involving
a significant a change
effect on theor
d. An uncertainty
changes
company's in financial
accountingrelating to the future
principles,
position; outcome
affecting of significantof
the comparability
e. That
litigation
the theorentity
financial is a component
regulatory
statements actions;
with thoseandofofa larger businessperiod;
the preceding enterprise.
COMMENTS