1. 3 - 1 ©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder Audit Reports Chapter 3

2. 3 - 2 ©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder Key topics in Chapter 3 Unqualified opinion  Understand what information is conveyed in the introductory, scope, and opinion paragraphs.  Know the report title, who the report is addressed to, and what the date represents.  Understand the impact of integrating the internal control over financial reporting with the standard report on financial statements.

3. 3 - 3 ©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder Key topics in Chapter 3 Unqualified opinion with an explanatory paragraph or modified wording  Know the circumstances under which this type of opinion is warranted, and where the paragraph is found on the report. Consistency vs. Comparability Consistency vs. Comparability Qualified, adverse, and disclaimers of opinion  Know the circumstances that would result in these different types of reports.

4. 3 - 4 ©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder