Code of Professional Conduct Case Study Example | Topics and Well Written Essays - 1000 words

Code of Professional Conduct - Case Study ExampleThese financial statements are the indebtedness of the Companys management. Our state is to express an opinion on these financial statements based on our analyse.We conducted our canvass in accordance with chiefly accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An Audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the account principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We opine that our audit provides a reasonable basis for our opinion.The company recorded land purchased at $100,000 at appraisers value of $700,000 in violation of generally accepted explanation principles that such land should be record ed at historical cost of $100,000 only.In our opinion, except for the violation of the generally accepted accounting principles on beseeming recording of land, the financial statements referred to above present fairly, in all material aspects, the financial position of Graham Company as of December 31, 20XY, and the results of its operations and its property flows for the year then ended in conformity with generally accepted accounting principles.W... January 10, 20XYADVERSE OPINIONAUDITORS REPORT Scope Section We have audited the come with balance sheet of Graham Company as of December 31, 20XY, and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An Audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We think that our audit provides a reasonable basis for our opinion. Middle Section The company recorded land purchased at $100,000 at appraisers value of $700,000 in violation of generally accepted accounting principles that such land should be recorded at historical cost of $100,000 only.Opinion sectionIn our opinion, because of the material effects of the violation of generally accepted accounting principles in the recording of land, the financial statements referred to above do not present fairly the financial position of Graham Company as of December 31, 20XY, and the results of its operations and its cash flows for the year then ended.Los Angeles, California