LEARNING OBJECTIVES
After studying this chapter, you should be able to
1 Describe the parts of the standard unmodified opinion audit report for nonpublic entities under AICPA auditing standards.
2 Specify the conditions required to issue the standard unmodified opinion audit report.
3 Understand reporting on financial statements and internal control under PCAOB auditing standards.
4 Describe the five circumstances when an emphasis-of-matter
explanatory paragraph or nonstandard wording is appropriate to include in an unmodified opinion audit report.
5 Identify the types of audit reports that can be issued when an unmodified opinion is not justified.
6 Explain how materiality affects audit reporting decisions.
7 Draft appropriately modified opinion audit reports under a variety of circumstances.
8 Determine the appropriate audit report for a given audit situation.
9 Understand the use of international accounting and auditing standards by U.S. companies.