Following the Audit Standards Set by the PCAOB, the Independent

question 39

Essay

Following the audit standards set by the PCAOB, the independent CPA conducts audits of public companies.The auditor then issues the audit report.
Required:
Describe the three opinions that the auditor expresses in the audit report.

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Definitions:

Conversion Period

The time it takes for resources to go through the production process and become finished goods ready for sale.

Internal Control

Processes and procedures implemented by a firm to safeguard assets, ensure financial report accuracy, and promote operational efficiency.

Control Environment

The set of standards, processes, and structures that provide the basis for carrying out internal control across the organization.

Reasonable Assurance

An acceptable level of certainty or confidence in the accuracy of financial statements, provided by internal controls.