Lesson: Example of an Unmodified Auditor's Report

In this lesson, an example of an unmodified auditor's report is provided, with Nick Palazzolo highlighting key phrases and points that should be understood by aspiring CPAs. The lesson walks through the report, covering the presentation of financial statements being audited, results of the audit, and referencing GAAP in the United States of America. Additionally, the basis for opinion, the auditor's responsibilities, and management's responsibilities are discussed, with an emphasis on independence and sufficient and appropriate audit evidence. Furthermore, the lesson explores the auditor's objectives and the idea of reasonable assurance, including the differences between error and fraud as well as material misstatements and their influence on a reasonable user's judgment.