Section 4: 10–20%A15
Audit Reports
Exam Insight
The audit report is the primary deliverable of an audit engagement. The CPA exam heavily tests the four opinion types, when each is appropriate, and the specific language used. Getting the opinion type wrong is a guaranteed exam mistake.
What AICPA Wants You to Know
- 1Identify the four types of audit opinions
- 2Determine the appropriate opinion for given circumstances
- 3Understand the structure and required elements of the audit report
- 4Distinguish between emphasis-of-matter and other-matter paragraphs
- 5Apply the concept of pervasiveness in selecting opinion type