One Drop Canada
Memo to the Board of Governance
There are 4 types of audit opinion:
Unqualified opinion- which means that an auditor states the financial statements are fairly presented in accordance to GAAP.
Qualified opinion- when the auditor encounters one or two types of situations which do not comply with GAAP but the rest of the financial statements are fairly presented.
Disclaimer opinion- given by the auditor when the auditor could not form an opinion and thus refuses to present an opinion on the financial statements.
Adverse opinion- provided when financial statements are misstated and do not confirm with GAAP. (F/Ss are not fairly presented.)
By looking at the Auditor's report on the audited annual report p.1, we have concluded that the auditor gave an unqualified opinion because the auditor stated the financial statements are fairly presented in accordance with Canadian Generally accepted accounting principles
Auditor's report is addressed to the members of ONE DROP foundation as stated on p.1
of the audited financial statement. However, the auditor, even though hired by the organization, represents the users to the financial statement. These users include creditors, investors, employees, contributors etc'...
The date of the financial statement is December 31, 2009. This means that the fiscal year of the organization ends on December 31. However, auditor's report date is February 25, 2010. This date represent the date on which the auditor released his report, and this date is after the financial statements' date (after the fiscal year) since the auditor had to check and verify that the financial statements were fairly presented based on GAAP.
Firm for current and preceding year
Deloitte was the CA firm auditing the organization in the current and preceding year. This means that Deloitte already has experience and knowledge of the...