Auditing

1. The auditor’s report indicates whether the financial Statements comply with generally accepted accounting principles. The auditor’s report also state other information related to the financial statements that have not been included. Thirdly the auditor states whether there is any irregularities in the audit examination.
4. When the Financial statements contain a departure from GAAP, including an adequate disclosure, the auditor will have to choose between a qualified , unqualified or adverse opinion. The auditor may bring additional information on important information to the Users.
5. If the report is immaterial the auditor reserves the right to treat it as if the departure did not exist. The auditor must qualify the opinion if the departure is sufficient enough.
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