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First, the standard accounting principles
General accounting principles
- The principle of continuity
- the principle of the accounting unit
- the unit of measurement principle of cash
- the principle of the accounting period
Principles linked to the income statement The principle of revenue recognition
- the principle of the interview between revenues and expenses
-the principle of separationbetweennormalprofits and lossesandgains and lossesunusual. Principlesrelated tofinancial status-Historical cost basis(fixed assets) -the principle ofcostormarket, whichever is less (current assets)
-showthe principle offixed assetsminusdepreciationcomplexesarepro forma-the principle ofshowingthe valueandnature ofeach of theassets, liabilitiesandcapitalseparately
- the principle of adequate disclosure in the form of notes and explanations down the budget for information can not be contained within the budget, such as spin-off of responsibility.
Second, the standard stability / homogeneity Stability established in the application of the same accounting rules for comparative purposes and is not a comparison between the two lists do not count do not count in the foundations of one.
Third: standard disclosure Disclosure does not mean the appreciation that the financial statements disclose the fact that the information contained in it is correct or incorrect only, but rather this criterion exceptional that references will refer to this standard, but if it turns out his insufficient disclosure if it turns out the references that disclose enough did not mention it in his report any Scott references in his report on the disclosure means that the financial statements disclose in a clear and accurate information contained herein and should Lecco disclosure sufficient only in accordance with the principle of relative importance as means adequate disclosure include the financial statements information about the material facts that have an impact on the financial statements and this it is important to reach those interested in studying the financial statements and in the event that sees the auditor that there is no substantial data have mentioned in the notes to her and reticent in his report at the heart of the report the full disclosure means include financial statements detailed information may result in a lack of clarity of the facts core while fair disclosure is relative where opinion differs from Checker to another just to be considered disclosure.
Fourth: The standard opinion It is intended that the standard references must express his opinion on the financial statements as a single unit and only if he refuses it should say why. The auditor's opinion they are four types as follows:
Clean opinion without reservations Opinion be clean if he fulfills all of the following cases and not part of it and must contain a clean opinion on the following points: -
That the auditor has completed the audit process in accordance with generally accepted auditing standards, without any pressure or restrictions from the administration.
- That the financial statements are prepared in accordance with generally accepted accounting principles or accepted.
- That these principles are applied uniformly from period to another. - Financial statements that meet the requirements of adequate disclosure. - There is no violation of the Statute of the company or the provisions of the law.
Qualified opinion Be a qualified opinion in the following cases: - If there is a departure from generally accepted accounting principles generally accepted that this is not significantly out of the core so as not to show the opinion shows that the reservation mentioned in paragraph scope of the examination. - If the financial statements are prepared in a manner that does not meet the standard of adequate disclosure so as not to meet the needs of users of financial statements and the reservation mentioned in paragraph opinion. - If there are restrictions on the auditor during the audit process, whether from management or caused by circumstances and nature of the activity in the company and the reservation mentioned in this paragraph the scope of the examination.
Dissenting opinion Shows the auditor's opinion exhibitions in one case, which is if there was a break fundamentally from the accounting principles and the reservation mentioned in paragraphs paragraph scope of the examination so that the auditor to mention in his report that these lists are no longer in accordance with the accounting principles generally accepted and paragraph opinion, which he says checker In We saw that the financial statements do not reflect the true financial position and result of the project.
Negative opinion It is the most dangerous type of opinion of the auditor, a disclaimer of opinion, and together with the reasons that led him to this refrain and be so in the case of a limitation on auditor made him non-completion of the audit process in accordance with the principles and generally accepted auditing standards and had these limitations significant impact on the completion of the process audit, such as a limitation of the administration so that makes it a non-independent in the performance of the audit process and the performance of tests planned and therefore was not able to complete the audit in accordance with generally accepted auditing standards with the observation that the constraints and pressures imposed on the auditor by management has resulted in the inability to verify some elements the relative importance of large or intrinsic to the financial statements
The auditor's report includes the following basic elements, ordinarily in the following layout:
1) Title
2) Addressee
3) Opening or introductory paragraph
4) Scope paragraph
5) Opinion paragraph
6) Date of the report
7) Auditor's address and
8) Auditor’s signature.
AGREE WITH MR HANY
I agree with Mr. Hani answer
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