Parts of the Standard Unqualified Audit Report

1. Report title
2. Audit report address
3. Introductory paragraph
4. Scope paragraph
5. Opinion paragraph
6. Name of CPA firm
7. Audit report date

Conditions for Standard Unqualified Audit Report

1. All financial statements are included.
2. The three general standards have been followed in all respects on the
engagement.
3. Sufficient evidence has been accumulated to conclude that the three standards of
field work have been met.
4. The financial statements are presented in accordance with generally accepted
accounting principles.
5. There are no circumstances requiring the addition of an explanatory paragraph or
modification of the wording of the report.

Four Categories of Audit Reports

1. Standard unqualified
2. Unqualified with explanatory paragraph or modified wording
3. Qualified
4. Adverse or disclaimer

Sarbanes-Oxley Act
This Act requires the auditor of a public company to attest to managements report
on the effectiveness of internal control over financial reporting.
PCAOB Auditing Standard 2 requires the audit of internal control to be integrated
with the audit of the financial statements.

Combined Report on Financial Statements and Internal Control Over Financial

Reporting
1. Introductory paragraph
2. Scope paragraph
3. Definition paragraph
4. Inherent limitations paragraph
5. Opinion paragraph