Auditors' reports.

This checklist is excerpted from the American Institute of CPAs Financial Statement Preparation Manual. It was developed as a nonauthoritative practice aid and is to be used for OCBOA (other comprehensive basis of accounting) engagements. The checklist does not represent minimum requirements and is not all inclusive.

GENERAL

1. Does the reporting language conform to the standard accountant's reports in Statement on Auditing Standards no. 62, Special Reports?

[ ] Yes [ ] No [ ] N/A

2. Do the tides of the financial statements described in the first and opinion paragraphs conform to the tides of the financial statements?

[ ] Yes [ ] No [ ] N/A

AUDITOR'S REPORT 

3. Does the audit report include:

a. A statement of the basis of presentation and reference to the note to the financial statements that describes the basis.

[ ] Yes [ ] No [ ] N/A

b. A statement that the basis of presentation is a comprehensive basis of accounting other than generally accepted accounting principles.

[ ] Yes [ ] No [ ] N/A

Note: For review and compilation reports, these statements are not required unless the financial statements omit such disclosures.

AUDIT REPORT MODIFICATIONS

4. Is an explanatory paragraph (or other explanatory language) added to the standard report (following the opinion paragraph) if:

a. There is lack of consistency in accounting principles?

[ ] Yes [ ] No [ ] N/A

b. The financial statements are affected by uncertainties concerning future events, the outcome of which is not reasonably estimable at the date of the auditor's report?

[ ] Yes [ ] No [ ] N/A

c. There is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time and that conclusion is expressed through the use of the phrase "substantial doubt about its (the entity's) ability to continue as a going concern?"

[ ] Yes [ ] No [ ] N/A

5. Does the introductory paragraph of the report disclose that the author has decided to refer to the report of another auditor as a basis, in part, for his or her opinion? Is reference made to the report of the other auditors?

[ ] Yes [ ] No ] N/A

6. If the auditor expresses an opinion on prior-period financial statements that differs from the opinion he or she previously expressed on that same information, are the substantive reasons for the different opinion disclosed in a separate explanatory paragraph preceding the opinion paragraph?

[ ] Yes [ ] No [ ] N/A

7. If the financial statements are not suitably tided, is the opinion qualified and an explanatory paragraph added to the report?

[ ] Yes [ ] No [ ] N/A

8. If appropriate disclosures have not been made, is the opinion qualified?

[ ] Yes [ ] No [ ] N/A

9. If there is a material departure from the stated OCBOA method, is the auditor's report modified for a departure from the basis of accounting?

[ ] Yes [ ] No [ ] N/A

REVIEW AND COMPILATION REPORT MODIFICATION

The circumstances requiring modification to the standard compilation or review report are the same as those that require modification to the standard auditor's report except that normally, neither an uncertainty nor an inconsistency in the application of accounting principles would cause the accountant to modify the standard compilation or review report, as long as the financial statements appropriately disclose such matters.