Standards-Based Decision Making Essay Example | Topics and Well Written Essays - 1000 words

Standards-Based Decision Making - Essay Exampleditors are required to state whether an analyse client has complied with the broadly speaking Accepted Accounting Principles (G.A.A.P) when preparing fiscal statements (Williams, 2006).Green and Associates is an external study firm to ABC society. The audit firm may provide any of the four types of the audit tones after completing a corporate financial audit on ABC Corporations financial statements. Green and Associates may provide an clean or clean assent of the companys financial statements. An unqualified opinion is only provided when an audit firm ascertains that a companys financial statements reflect a truthful opinion of its financial operations. The opinion also indicates that the companys financial statements are in compliance with the G.A.A.P. An unqualified opinion is the best audit report that a company can receive from its auditors.In our opinion, ABC Corporations financial records provide an honest and sporting vie w of its financial operations during the fiscal year ended 31th August and are in compliance with the Generally Accepted Accounting Principles.An unqualified opinion may warrant an explanatory paragraph if the auditors feel that certain disclosures in the financial statements require a detailed explanation or when there is a change of auditors. It arises when the financial records indicate some minor deviations from G.A.A.P. The explanatory paragraph includes a detailed explanation of the auditors opinion.In our opinion, ABC Corporations financial statements require modification to expel the minor inconsistencies with the G.A.A.P, despite reflecting a accredited and fair view of the companys financial operations.An audit report may provide a qualified or an except for opinion after completing a corporate financial audit. Green and Associates may provide a qualified opinion if it believes that ABC corporations financial records are not in compliance with the G.A.A.P, despite represe nting a true