Sample auditor's unqualified opinion

The Board of Directors Company, Inc.

I have examined the balance sheet of the Company, Inc., as of Decem­ber 31, 1999, as well as the related statements of income and retained earnings and changes in financial position for the year ending on that date. My examination was made in accordance with generally accepted standards of auditing. It included tests of the accounting records and those other procedures that I considered necessary.

In my opinion, the accompanying balance sheet and statement of income and retained earnings present fairly the financial condition of Company, Inc., on December 31, 1999, and the results of its operations for the year ending on that date, in conformity with generally accepted principles of accounting applied on a basis consistent with that of the year preceding.

Daniel M. Fletcher Certified Public Accountant

New York, New York January 30, 2000.

Sample petty cash voucher

CASH VOUCHER			№ 138 Date May 8, 19 99
Pay to	Martha Reynolds
Description				Amount		Account Number
Cabfare and postage				20.	00	707
Approved By CWM		Entered By PMS	Receipt of Above is Hereby Acknowledged By M. Reynolds

I. Indicate whether each of the following statements is true or false.

1. The people, who keep the financial records for an organization, are the same people who carry out an audit of those records.

2. An outside or independent auditor is only brought in when a company is having financial difficulties or when irregularities are suspected.

3. The more internal controls an organization has, the more efficient is its operation.

4. Many companies nowadays employ accountants of their own to maintain a continuous internal audit.

5. Internal auditors try to make sure that the operating sections of a company follow the policies established by management.

6. The reports of internal auditors always reach the people in management who can act on them.

7. CPAs seldom do independent auditing work.

8. An independent auditor must examine not only the financial records, but also the evidential matter that supports them.

9. The scope paragraph of an auditor's reporting letter includes both the extent of the audit and the standards that have been used to carry it out.

10. An independent auditor is not concerned with judg­ing the efficiency of a company's internal control system.

11. The precision with which an auditor expresses his opinion is not important.

12. If a company's financial records are not in satisfacto­ry condition, the independent auditor must state in what way they are incorrect or incomplete.

13. When an auditor's opinion is unqualified, he believes that a company's records meet the standard for fairness.

14. An unqualified opinion by an independent auditor indicates that he has found minor areas in the finan­cial statements that are not kept according to generally accepted accounting principles.

15. A qualified opinion indicates that there were procedural omissions or variations in the financial records that have been audited.

16. An independent auditor can give a piecemeal opinion about only some aspects of the financial records.

17. A disclaimer of opinion indicates that the independ­ent auditor cannot reach any judgment on the finan­cial records.

18. Only very large corporations need independent audits.