course hero how does the information in the preceding paragraphs

What is the basis for an opinion?

The opinion and basis for opinion sections include reference to management's report on internal control over financial reporting, and the scope of the auditor's work and opinion on internal control over financial reporting. The basis for opinion paragraphs also refer to the framework used to evaluate internal control. Two additional paragraphs are added below the basis for opinion paragraphs that define internal control and describe the inherent limitations of internal control. There is also a cross reference paragraph between the opinion and the basis for opinion paragraphs that references the report on the audit of the financial statements.

Why is the opinion section important?

The purpose of the opinion section is to state the auditor's conclusions based upon the results of the audit evidence. The most important information in the opinion section includes:

What is a qualified opinion due to a scope limitation?

An important part of qualified opinion due to a scope limitation is that it results from not accumulating sufficient appropriate audit evidence, either because of the client's request or because of circumstances beyond anyone's control. When the opinion is qualified due to a scope limitation, the auditor modifies both the scope and opinion paragraphs. The scope paragraph is modified to indicate that the auditor's scope has been restricted and the opinion paragraph is modified to include the qualified opinion.A report qualified as to opinion only results when the auditor has accumulated sufficient appropriate evidence but has concluded that the financial statements are not correctly stated. The only circumstance in which an opinion only qualification is appropriate is for material, but not highly material, departures from GAAP. When the opinion is qualified due to a GAAP departure, only the opinion paragraph is modified to include the qualified opinion. The scope paragraph is not modified because there has been no limitation on the auditor's scope.

What does "in our opinion" mean?

1. The words "in our opinion," which indicate that the conclusions are based on professional judgment.

Do you need an explanatory paragraph for a change in accounting principles?

Even though this change has been reflected in the financial statements, a separate explanatory paragraph is required to explain the change in generally accepted accounting principles in the first year in which the change took place.

What is the final point made in the preceding paragraph?

The final point made in the preceding paragraph would suggest that groups need to work together over a lengthy period.

Do instrumental contingencies have to be empirically verified?

As with claims of "obvious" instrumental contingencies discussed in the preceding paragraph, these interpretations have to be empirically verified.

Can you use "paragraph" and "previous" together?

These words are often used together. You can go to the definition of preceding or the definition of paragraph . Or, see other combinations with paragraph .

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