[Anonymous]

First of all “FAR Wars” in the threads – hysterical as insider CPA jokes go.

I’m trying to get a conceptual framework down for the reports and I was wondering if this works:

If you qualify, adverse, disclaim – matter isn’t mentioned in an EOM or OM paragraph.

IOW, am I right in thinking that adequate disclosure of any problem (consistency, going concern, contingency) by the company allows you to use an EOM paragraph unless it causes the financial statements to be misstated.

If any of those things is a material departure or not justifiable then it’s a qualified (material) or adverse (material and pervasive) and you don’t use the EOM. It all goes in the basis for opinion paragraph.

Thanks!

[FAR_WARS]

I am glad that you like my username- I have spiced up my profile in response to your post.

Yes, an EOM or OM paragraph is only added to an Unmodified Report:

Title
Intro
Mgmts responsibility
Auditor's responsibility
Audit opinion
Emphasis of Matter
Other matter

A modified report will contain a “Basis of Opinion” paragraph:

Title
Intro
Mgmt responsibility
Auditor's responsibility
Basis of Opinion
Audit Opinion

Does that help?

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Author]

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