AUD — Quick Sheet
Audit Reports
Read time: ~5 minutes
One-minute revision
- Misstatement: material → Qualified; material + pervasive → Adverse
- Scope limitation: material → Qualified; material + pervasive → Disclaimer
- Emphasis-of-matter = something IN the statements; Other-matter = something NOT in the statements
- Neither EOM nor OM modifies the opinion
- Issuers: CAMs + auditor tenure. Nonissuers: KAMs only if engaged to report them
COMMON TRAP: Adverse comes from misstatements; disclaimer comes from scope limitations. Don't cross the wires.