To facilitate the instructor's use of this case in the classroom, we have included the following suggested solutions to the case questions in Part 1 and Part 2.
For the audit reports in this section, references to specific auditing standards included below relate to the PCAOB Interim Standards and the PCAOB Auditing Standards (AS).
As noted in paragraph .08 of AU Section 508, the auditor's standard report identifies the financial statements audited in an opening (introductory) paragraph, describes the nature of an audit in a scope paragraph, and expresses the auditor's opinion in a separate opinion paragraph (PCAOB 2003b). Paragraph .08 of AU Section 508 provides a description of the specific information included in the standard report as well as an audit report example.
This paragraph refers readers to the auditor's opinion on internal control over financial reporting. Refer to paragraph .08 (item k) in AU Section...