Sunshine Corporation
By: July • Essay • 298 Words • March 25, 2010 • 850 Views
Sunshine Corporation
The deficiencies are:
1. The audit report is not dated. The audit report date should be the last day of the
field work.
2. The balance sheet is as of a particular date , whereas the income statement and the
statement of retained earnings are for a period of time.
3. The introductory paragraph should identify the period of time (usually one year).
4. The introductory paragraph should state that the financial statements were audited.
5. The introductory paragraph should state the responsibilities of management and of
the auditor.
6. There is really no scope paragraph.
7. The second and third sentences in the first paragraph approximate the first two
sentences in scope paragraph except that the first of the two sentences should state
that the audit was conducted in accordance with generally accepted auditing
standards rather than accounting standards.
8. And the second of the two sentences should state “the financial statements are free
of material misstatement.”
9. The latter two sentences of the scope paragraph which describe an audit are missing
10. An additional paragraph should be included between the scope and opinion
paragraphs which describes the dividend restrictions and the refusal of the client to
present a statement of changes