Asked by Carley Hirsch on May 14, 2024
Verified
Following the audit standards set by the PCAOB, the independent CPA conducts audits of public companies.The auditor then issues the audit report.
Required:
Describe the three opinions that the auditor expresses in the audit report.
PCAOB
Stands for the Public Company Accounting Oversight Board, which is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.
Audit Report
An official opinion issued by an auditor based on an examination of a company's financial statements, expressing the auditor's view on whether the financial statements give a true and fair view of the company's financial performance and position.
Independent CPA
A Certified Public Accountant who performs an audit without having any conflicts of interest, ensuring impartiality and objectivity.
- Comprehend the roles and responsibilities of auditors and the significance of audit reports in public companies.
- Understand the PCAOB's influence on audit standards and the types of opinions expressed in audit reports.
Verified Answer
b. that the company maintained effective intemal control over its financial reporting
c. that the company sfinancial statements present fairly the financial position of the company and the results of its operations and cash flows in conformity with accounting principles generally accepted in the United States of America
Learning Objectives
- Comprehend the roles and responsibilities of auditors and the significance of audit reports in public companies.
- Understand the PCAOB's influence on audit standards and the types of opinions expressed in audit reports.
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