[elprezidente07]

I’m getting for a second attempt at audit and had a question from my studies:

The book has a poorly written sentence that says: Under both standards (for public and privately held companies) the auditor is required to not issue a report stating that no significant deficiencies exist. Under SSAE 15 (private only) the auditor is required to not issue a report stating that no material weaknesses were identified.

Can someone translate what this actually means? What can you and can’t you state in the report? For PCAOB audits with no significant deficiencies do you just not issue a report?

AUD // F x2 P 92- (Test server crashed! It really does happen!)
REG // F, F, F, P - 75 Aug 2014
BEC // P - 80
FAR // F, F...now its time for my greatest trick yet.
Ethics // Very.

75 to stay alive

[sbarkerACPA]

You can't explicitly state “no significant deficiencies existed”. If significant deficiencies or material weakness existed then you will issue an adverse opinion. If none existed then you would state in the opinion paragraph”In our opinion, W Company maintained, in all material respects, effective internal control over financial reporting, as of …..”

Hope that helps

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[Shay]

@elprezidente07

You can NOT state explicitly “no significant deficiencies”…doesn't matter if significant deficiencies exist or not.

You can state “no material deficiencies”..if there are “no material deficiencies”..

Becker does a great job on this.

[Rukus]

I agree, you are not allowed to state “there are no significant deficiencies” even if you found none. However, you are allowed to say “there are no material weaknesses,” if none are found.

FAR - 81 (8/31/12)
AUD - 93 (10/19/12)
BEC - 79 (11/27/12)
REG - 92 (2/8/13) DONE! All 1st attempt!

[Igotthis]

For both PCAOB and SSAE you can not state that “there are no significant deficiencies” but there is a difference in stating ” no material weakness were identified”

PCAOB you can state that there were no material weaknesses but SSAE you can NOT state that there were no material weaknesses.

[Author]

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