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Chapter 15

This document defines key terms related to auditing financial statements for groups or components. It defines terms like component, group, group audit, and group financial statements. It also defines the roles of a component auditor and group engagement partner. Finally, it defines terms related to audit opinions, including modified opinion, pervasive, positive assurance, and unqualified opinion.

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120 views2 pages

Chapter 15

This document defines key terms related to auditing financial statements for groups or components. It defines terms like component, group, group audit, and group financial statements. It also defines the roles of a component auditor and group engagement partner. Finally, it defines terms related to audit opinions, including modified opinion, pervasive, positive assurance, and unqualified opinion.

Uploaded by

hanna sanchez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 15 Audit Reports on Financial Statements

32
Component
An entity or business activity for which group or component
management prepares financial information that is required by the
applicable financial reporting framework to be included in the group
financial statements.
Component auditor
An auditor who performs work on the financial information of a
component that will be used as audit evidence for the group audit. A
component auditor may be part of the group engagement partners
firm, a network firm of the group engagement partners firm, or
another firm.
Group
All the components whose financial information is included in the group
financial statements. A group always has more than one component.
Group audit
The audit of group financial statements.
Group audit opinion
The audit opinion on the group financial statements.
Group engagement partner
The partner or other person in the firm who is responsible for the group
audit engagement and its performance, and for the auditors report on
the group financial statements that is issued on behalf of the firm.
Group financial statements
Financial statements that include the financial information of more
than one component. The term group financial statements also refers
to combined financial statements aggregating the financial information
prepared by components that have no parent but are under common
control.
Modified opinion
A qualified opinion, an adverse opinion, or a disclaimer of opinion.
Pervasive
A term used in the context of misstatements to describe the effects or
the possible effects on the financial statements of misstatements that
are undetected due to an inability to obtain sufficient appropriate audit
evidence.
Positive assurance
An explicit statement as to whether the financial statements are
presented fairly.
Unqualified opinion

CHAPTER 15 Audit Reports on Financial Statements


32
The opinion expressed by the auditor when the auditor concludes that
the financial statements are presented fairly, in all material respects, in
accordance with the applicable financial reporting framework.

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