Can you post a link to the sample report from Wiley? I wonder if the sample you are looking at is actually a Compliance Audit, not a Financial Statement Audit?
The standard report format goes like this:
Unmodified Opinions on Basic Financial Statements Accompanied by Required Supplementary Information
and Other Information—State or Local Governmental Entity
Independent Auditor’s Report
[Appropriate Addressee]
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities…
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements…
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities…
Other Matters – Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary
comparison information on pages XX–XX and XX–XX be presented to supplement…
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated [date of report]
on our consideration of the City of Example's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City of Example’s internal
control over financial reporting and compliance.
[Auditor’s signature]
[Auditor’s city and state]
[Date of the auditor’s report]
https://www.aicpa.org/interestareas/governmentalauditquality/resources/illustrativeauditorsreports/downloadabledocuments/illustrativegovernmentauditingstandardsreports2016.pdf
Example 4-1
So, the required reporting on compliance is in the “Other Reporting Required by Government Auditing Standards” paragraph. An opinion on compliance is not issued. But the auditor does report on it. In order to issue an opinion on compliance, you would have to do far more testing than is required for a financial statement audit. That's a completely different engagement.
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