CPA Auditing and Attestation (AUD)

Certified Public Accountant Auditing and Attestation examination.

Audit Fundamentals & PrinciplesEthics and Professional ResponsibilitiesAudit Evidence & Documentation
Internal Controls & Risk AssessmentAudit Sampling & Analytical ProceduresAudit Reports & Opinions
Auditing Revenue CyclesTesting Inventory & Physical CountsAuditing Information Systems
Time Management for the AUD ExamMastering Multiple Choice & SimulationsActive Learning Techniques
Audit Fundamentals &...Ethics and Professio...Audit Evidence & Doc...Internal Controls & ...Audit Sampling & Ana...Audit Reports & Opin...Auditing Revenue Cyc...Testing Inventory & ...Auditing Information...Time Management for ...Mastering Multiple C...Active Learning Tech...
Advanced Topics

Audit Reports & Opinions

Types of Audit Opinions

At the end of an audit, CPAs issue a report with an opinion:

  • Unqualified (Clean): Statements are fairly presented.
  • Qualified: There’s a specific, limited issue.
  • Adverse: Statements are materially misstated.
  • Disclaimer: No opinion due to insufficient evidence.

Structure of an Audit Report

  • Title and addressee
  • Introductory paragraph
  • Management’s responsibility
  • Auditor’s responsibility
  • Opinion paragraph

Importance in the Real World

Audit reports guide investors, lenders, and regulators in decision-making.

Examples

  • A bank relies on an unqualified opinion before approving a loan.

  • An adverse opinion warns investors of significant financial issues.

In a Nutshell

Audit opinions communicate findings and influence stakeholders.

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Auditing Revenue Cycles