chapter 3 reports on audited financial statements 《独立审计具体准则第 7 号 ------ 审...

CHAPTER 3

• Reports on

Audited Financial statements

《独立审计具体准则第 7 号 ------审计报告》 (2003 年 4 月 14 日

修订）

Chief Points

• Standard Unqualified Report and Variations

• Audit Report Reservations

• Unqualified Opinion with Explanation or Modification

Association with financial statements

• A report must be rendered in all cases where a PA`s NAME is Association

with financial statements.

• Reason: an audit has been conducted and that “everything is ok”

1.LEVELS OF Assurance

Audit review compilation

Audit assurance

Negative assurance

No assurance

standard unqualified report

Review Report

Denial of opinion

1.LEVELS OF Assurance

• (1)Highest level----- Positive assurance

• standard unqualified report

“In our opinion, the accompanying FS present fairly, in all material respects.”

• (2)Middle level----Negative assurance

• “Based on my review, nothing has come to my attention that causes me to believe that these financial statements are not, in all respects,in accordance with GAAP. ”

The use of negative

• A.prohibit: Audited financial statements Too WEAK a conclusion for the audit effort in

volved.• B.Permitted: (1)Reviews of nonfinancial statements. ICS (2)Reviews of unaudited financial statements. Interim financial information, FS to Underwriters

1 、 LEVELS OF Assurance• (3)Lowest level----No assurance

• Audit Fs: Denial of opinion

• Compilation:Disclaimer of opinion

• “ I am unable to express an opinion whether these information financial statements are presented fairly in accordance with GAAP.

• Exhibit3-1, P70

Levels Assur-ance

Audit Review Complia

tion

sentence

Highest

Positive StandardUnqualified report

In our opinion, present fairly

Middle Negative Non-Fs,

Unaudited Fs

nothing has come to my attention

Lowest No Denial of opinion

Denial of

opinion

I am unable to express an opinion

2.Standard Unqualified Report and Variations

1)Unqualified opinion

2)Qualified opinion

3)Adverse opinion

4)Denial of opinionAudit report reservations

Standard Unqualified opinion

Unqualified opinion with explanation

Standard Unqualified Audit Report

Clean Opinion

2.1 Standard Unqualified Report

1、我的审计符合公认审计准则

trained and proficient, independent，

Due care, planned and supervised,

understanding IC, S&A evidence

2、你的报表符合公认会计准则

Introductory, scope, opinion paragraph

Standard Unqualified ReportI have audited the balance sheet of _____ as at _____, 20__, and the statements of income, retained earnings and cash flow for the year then ended. These financial statements are the responsibility of the company’s management. My responsibility is to express an opinion on the financial statements based on my audit..

I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly in all material respects the financial position of the company as at _____, 20__, and the results of its operations and the cash flows for the year then ended in accordance with generally accepted accounting principles.

2.2 Reservation in the Standard Unqualified Report

• 1.departure from GAAP Materiality

• 2.scope limitation Materiality

• 3.lack independence

3. Audit report reservation

3.1. GAAP departure reports Materiality

3.2. Scope limitation reports Materiality

3.3. Effects of lack of independence

Resign or not accept an audit

3.1. GAAP departure reports Materiality

(1)immaterial, unqualified(2)material enough, qualified: except for Scope--Reservation Paragraph--opinion(3)A: more than material adverse opinion (super-material) B: pervasive adverse opinion Scope--Reservation Paragraph--opinion because------do not present fairly---

（ 2 ） Qualified Report, except for p74

[nature of the GAAP departure explained in the report]

In my opinion, Except for the effects of the failure to [the departure] as described in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the company as at _____, 2002, and the results of its operations and the cash flows for the year then ended in accordance with generally accepted accounting principles.

保留意见的审计报告 • 第一段同无保留意见的审计报告，此略。• 除下段所述事项外，我们按照中国注册会计师独立审计准则计划和实施审计工作，以合理确信会计报表是否不存在重大错报。审计工作包括在抽查的基础上检查支持会计报表金额和披露的证据，评价管理当局在编制会计报表时采用的会计政策和作出的重大会计估计，以及评价会计报表的整体反映。我们相信，我们的审计工作为发表意见提供了合理的基础。

保留意见的审计报告 • 三维公司 2003年 12月 31日的应收账款余额 X万元，占资产总额的 X%。由于三维公司未能提供债务人地址，我们无法实施函证，且无法实施其他审计程序，以获取充分、适当的审计证据。

• 我们认为，除了未能实施函证可能产生的影响外，上述会计报表符合国家颁布的企业会计准则和《企业会计制度》的规定，在所有重大方面公允反映了三维公司 2003年 12月 31日的财务状况以及 2003年度的经营成果和现金流量。

（ 3 ） Adverse Report

• The GAAP Departure

• （ 1 ） More than material ：足够严重以至于影响到财务报表的正确理解（ overshadow ）

• （ 2 ）影响面广，影响到很多账户和相关的报表

• 出具否定意见的审计报告

Adverse Report p75 do not present fairly

★nature of the GAAP departure★In my opinion, because the write-down has

been made for the significant decline in value of the investment described in the preceding paragraph, these financial statements DO NOT present fairly the financial position of the company as at _____, 2002, and the results of its operations and the cash flows for the year then ended in accordance with generally accepted accounting principles.

否定意见的审计报告 第一段、第二段同无保留意见的审计报告。如会计报表附注 X所述，三维公司的长期股权投资未按企业会计准则的规定采用权益法核算。如果按权益法核算，三维公司的长期投资账面价值将减少 X万元，净利润将减少 X万元，从而导致三维公司由盈利 X万元变为亏损 X万元。我们认为，由于受到前段所述事项的重大影响，上述会计报表不符合国家颁布的企业会计准则和《 XX会计制度》的规定，未能公允反映三维公司 2003年 12月 31日的财务状况以及 2003年度的经营成果和现金流量。

3.2 Scope limitation reports Materiality

• Reason: (1)management`s deliberate refusal (2)circumstances• Report: (1)immaterial, unqualified (2)serious condition & can`t compensate material enough, qualified more than material denied

Denial of opinion, p77I am unable to express our opinion

★ scope limitation ★In view of the possible material effects on

the financial statements of the matters described in the preceding paragraph, I am unable to express our opinion on whether these financial statements are presented fairly in accordance with generally accepted accounting principles.

无法表示意见的审计报告 • 三维公司未对 2003年 12月 31日的存货进行盘点，金额为 X 万元，我们无法实施存货监盘，也无法实施替代审计程序，以对期末存货的数量和状况获取充分、适当的审计证据。

• 由于上述审计范围受到限制可能产生的影响非常重大和广泛，我们无法对上述会计报表发表意见。

3.3 Effects of lack of independence

A: Independence in appearanceB: Independence in mental attitude

Free of any influence, interest or relationship

(1)resign(2) not accept

4 、 Unqualified Opinion with Explanation or Modification

• (1)consistency

• (2)emphasis paragraph

• (3)uncertainties

• (4)going-concern

4.1 consistency

1 、 changes accounting estimates

error corrections

classification or aggregation

format or basis

subsidiaries

2 、 failure to disclose these changes

4.2 emphasis of a matter• Information requires by statute

• Unaudited comparative figures

• comparative figures reported on by the others

• Foreign reporting requirements

• Use of another appropriate disclosed basis

• Going concern issues

4.3 uncertainties

Possible gains or loss• Lawsuits• The value of fixed assets held for

sale• The status of assets involved in

foreign expropriations

Uncertainties: qualified opinion

1.Departure from GAAP

(1)Disclosure of uncertainty is inadequate

(2)use inappropriate accounting principles

(3)make unreasonable accounting estimates

2.A scope limitation about an uncertainty

4.4 going-concern

• Substantial disposition of assets outside the ordinary course of business

• Restructuring of debt

• Externally forced revisions of its operations

The facts are not adequately disclosed, A reservation of the audit opinion

非标准报告原因及种类

报告 范围限制 违背原则 不一致性 不确定性

保留性语言

除 ---之外 除 ---之外 不适用 除 ---之外

是否需要解释段

是 是 是 是

是否允许参考在财务报表附注中附加的信息

否 是 是 是

当原因非常重大时

拒绝表示意见

否定意见 无保留意见

无保留意见qualified o

pinion

5.reporting on the application of accounting principles

• Opinion shopping

• If you won`t agree with my accounting treatment, then I`ll find an anditor who will.

KEYPOINT

• Qualified opinion, p74, p75, except for

• Adverse opinion p75, do not present fairly

• Denial of opinion, p77,

• I am unable to express ore opinion

•

ASSIGNMENTS(3)

• （ 1 ） p71: 3.3, p76: 3.6-3.7, p77: 3.8- 3.9

• （ 2 ） p87: 3.19-3.29

• （ 3 ） 1/Team

E3.30 、 E3.31 ； E3.32 、 E3.33 ； E3.39 ；E3.41 ； E3.43.