Adverse Opinion
the opinion issued when the auditors conclude that the financial statements do not present the financial condition, results of operations, and cash flows in accordance with GAAP
associated (association) with financial statements
Situations in which auditors consent to the use of their name in some form of communication containing the entity's financial statements or submit to their clients or others (such as third-party users) financial statements they have prepared or assisted i
circumstance-imposed scope limitation
a restriction on auditors from gathering sufficient appropriate evidence because of a situation beyond control of both the auditors and client, such as late appointment of the auditors
client-imposed scope limitation
A restriction on auditors from gathering sufficient appropriate evidence because of the client's deliberate refusal to provide them access to evidence or to otherwise limit the auditors' application of auditing procedures.
component auditor
the auditor who audits divisions, subsidiaries, or components that are included in the group financial statements
Date of the auditor's report
the date on which auditors have obtained sufficient appropriate evidence to support their opinion
Departure from GAAP
situation in which an entity does not follow GAAP in preparing its financial statements. Auditors can issue qualified or adverse opinions for material departures from GAAP
Disclaimer of Opinion
a report issued when the auditor is not able to become satisfied that the overall financial statements are fairly presented or the auditor is not independent
division of responsibility
situation in which the component auditors are involved with the examination of a subsidiary, branch, component, or investment that is included in the financial statements audited by group auditors
emphasis of matter paragraph
A paragraph added to an auditors' report that provides information fundamental to users' understanding of the financial statements (such as consistency or going-concern uncertainties).
explanatory paragraph
A paragraph added to an auditors' report that either provides information fundamental to users' understanding of the financial statements (emphasis-of-matter paragraph) or is relevant to users' understanding of the audit, the auditor's responsibility, or
going-concern uncertainty
situation in which questions are raised about an entity's ability to continue operations and meet its obligations as they become due
group auditors
the auditors who perform the audit of a material portion of the assets, liabilities, revenues, and expenses of an entity's group financial statements; also known as principal auditors
group financial statements
the financial statements of more than one component (division, subsidiary, or other segment)
integrated report
a single report issued by auditors expressing their opinion on the fairness of the financial statements and effectiveness of internal control over financial reporting
Introductory Paragraph
The paragraph in the auditors' report that identifies the financial statements examined by the auditors and the responsibility of auditors and management with respect to the financial statements.
Modified Opinion
any opinion other than an unmodified opinion on an entity's financial statements
Opinion Paragraph
a paragraph in the auditors' report that expresses their opinion on whether the financial statements are presented in accordance with GAAP
other-matter paragraph
A paragraph added to the auditors' report that is relevant to users' understanding of the audit, the auditor's responsibility, or the auditors' report
Qualified Opinion
An opinion issued when the auditors conclude that, with the exception of one or more issue(s), the financial statements present the financial condition, results of operations, and cash flows in accordance with GAAP. Qualified opinions can be issued for ma
reissued report
a copy of a previously issued report that auditors provide or grant entities permission to use in another document after its original date; the report is not modified to consider events occurring subsequent to the date of the original report
Scope Limitation
A situation in which the auditors are unable to obtain sufficient appropriate evidence. If material, a scope limitation results in the issuance of either a qualified opinion or disclaimer of opinion.
Unmodified Opinion
An opinion issued when the auditors conclude that the financial statements present the financial condition, results of operations, and cash flows in accordance with GAAP (until recently, known as an unqualified opinion).
updated report
the auditors' report on prior-year financial statements that is based on both the prior-year audit and information that has come to the auditors' attention in the most recent audit