Describe the standard unqualified report to be issued for an audit of a private company. Begin by specifying the seven parts of the report, and then discuss the contents of each part.

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The Answer is The parts of the standard unqualified report are as follows:
• Report title. The title must include the word "independent." Examples of appropriate titles are "independent auditor's report," or "report of independent accountant."
• Report address. The report is usually addressed to the company's stockholders or board of directors. It should not be addressed to company management.
• Introductory paragraph. There are three important components of the introductory paragraph. First, it states that an audit was performed. Second, it lists the financial statements that were audited and their dates. Third, it states that management is responsible for the financial statements, and that the auditor is responsible for expressing an opinion on those statements based on an audit.
• Scope paragraph. The scope paragraph is a factual statement about what was done during the audit. It first states that auditing standards generally accepted in the United States of America were followed by the auditor. It then states that an audit is designed to obtain reasonable assurance about whether the statements are free of material misstatement. It concludes by stating that the auditor evaluated the appropriateness of the accounting principles used, and estimates made, by management, and of the financial statement disclosures and presentations given.
• Opinion paragraph. This paragraph states the auditor's opinion concerning whether the financial statements present fairly the client's financial position and results of its operations and cash flows in conformity with generally accepted accounting principles.
• Name of CPA firm. Typically, the name of the CPA firm, and not the name of an individual auditor, is used.
• Audit report date. The audit report is normally dated as of the last day of fieldwork.

Describe the Standard Unqualified Report to Be Issued for an Audit