The following auditor’s report was drafted by a staff accountant of Nathan and Matthew, CPAs, at the completion of the audit of the comparative of Monterey for the years ended December 31, 2015 and 2014. Monterey is a privately held company that prepares its on the income tax basis of accounting. The report was submitted to the engagement partner, who reviewed matters thoroughly and properly concluded that an unmodified opinion should be expressed. The draft of the report prepared by an inexperienced staff auditor is as follows:
Auditor’s Report
We have audited the accompanying of Monterey which comprise the statements of assets, liabilities, and capital-income tax basis as of December 31, 2015, and the related statements of revenue and expenses-income tax basis and of changes in partners’ capital accounts-income tax basis for the year then ended, and the related notes to the Responsibility
We conducted our audit in accordance with standards established by the AICPA. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used as well as evaluating the overall presentation of the believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the referred to above present fairly, in all material respects, the assets, liabilities, and capital of Monterey as of December 31, 2015, and its revenue and expenses and changes in partners’ capital accounts for the year then ended in conformity with generally accepted accounting principles applied on a consistent basis.
Basis of Accounting We draw attention to Note 2 of the which describes the basis of accounting. The are prepared on the basis of accounting the uses for income tax purposes. Accordingly, these are not designed for those who do not have access to the Partnership’s tax returns.
Our opinion is not modified with respect to this matter.
Nathan and Matthew, CPAs
April 3, 2016
Required:
Identify the errors and omissions in the auditor’s report as drafted by the staff auditor. Group the errors and omissions by paragraph, where applicable. Do not redraft the report.
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com