1. unmodifed standard
2. unmodified w/ an emphasis of matter of paragaraph
3. unmodified w/ other matter paragraph
4. unmodified on a group of inancial statements

1. Qualified opinion
2. Adverse opinion
3. Disclaimer of opinion

What circumstances would illicit an emphasis of matter of paragraph and group financial statements

1. When a company may not be a going concern
2. GAAP wasnt applied evenly, or was inconsistently applied
3. things are uncertain

1. Not following GAAP
2. Scope Limitations

Headers to paragraphs

"Standard Unmodified"

• Addressed to the Board of Directors and Stock Holders

• No headers

• "Standard Unqualified"- type of reports
• Useses the words "registered" or "independent"
• doesn't talk as much about management/auditors repsonsibility
• additional paragraph talking about internal controls

When can you give the opinion  "unmodified standard opinion"

(3 circumstances)

1. Done with GAAP
2. Audit done to GAAS/PCAOB Standards
3. No reasons for explanatory language

after the opinion section and after the emphasis of a matter paragraph

Where do the

1. qualified, disclaimer, adverse
2. consitency and going concern
3. Other information

paragraphs exist according to PCAOB?

1. Qualified etc.- before the opinion paragraph
2. consistency and going concern- after the opinion section
3. other- before or after

This is a GAAP Departure

thus it would be either a qualified or and adverse opinion

What kind of opinion would you give for when GAAP is not consistently applied?

1. properly handled
2. not properly handled

If properly handled-unmodified with an emphasis of matter of paragraph

If not properly handled- qualified or potentially adverse

GAAP not consistently applied:

What circumstances Will result in an unmodified with an emphasis in a matter of pargraph?

(4 situations)

1. material change in principle (e.g. FIFO/LIFO)
2. change in reporting entity (e.g. change in accounting for subsidiaries)
3. correction of an error in principle (e.g. inventory carried at replacement cost last year instead of LIFO thisy year)
4. change in principle inseperable from a change in estimate (e.g. changing amortizing/deffering to an expense)

GAAP not consistently applied:

Circumstances that Will Not result in an emphasis  in a mattter of paragraph

(4 situations)

1. change in estimate
2. changes in classification
3. change in principle that is immaterial
4. client used for one method for one type of inventory, and a different method for a different type of inventory

If uncerntaties are

1. recorded properly
2. not recorded properly

what type of report opinion  would you give

1. Properly-emphasis matter of paragraph
2.  Departure from GAAP - qualified/adverse

Other circumstances like

• significant related party transactions
• component of larger business enterprise
• unusually important events

what type of report opinion will you give