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6-38 [LO 1] The following two paragraphs are used...

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6-38 [LO 1] The following two paragraphs are used to present the auditor?s opinions of XYZ company: In our opinion, the financial statements referred to present fairly, in all material aspects, the financial position of XYZ Company as of October 31, 2010 and 2011, and the changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were performed for the purpose of forming an opinion on the basic financial statements of XYZ Company taken as a whole. The accompanying Schedule of Expenditures of Federal Awards and State Projects is presented for purposes of additional analysis as required by the U.S. Office ofManagement and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and chapter 10.650, Rules of the Auditor General, and is not a required part of the basic financial statements. The Schedule of Explicit and Discrete Disclosure for Able County and the Schedule of Revenue and Expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. (a)What do you know about XYZ Company based on the audit report? (b)How are the deliverables in this audit engagement different from those of a ?standard? integrated audit of a company that has to file with the SEC? (c) Based on the information you can glean from the audit report paragraphs above, what would the auditor consider in planning the scope, timing, and resources for the audit engagement?

 

Paper#7556 | Written in 18-Jul-2015

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