Integrated Auditing Practise Case-Audit Report

Topics: United States, Financial audit, Audit Pages: 2 (391 words) Published: July 14, 2011
Certified Public Accountants
Ocean City, Florida 33140

Independent Auditor’s Report

To the Stockholders
Oceanview Marine Company

We have audited the accompanying balance sheet of Oceanview Marine Company as of December 31, 2007, and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statement as of and for the year ended Dec 31, 2006 of Oceanview Marine Company. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to data included for Oceanview Marine Company, Dec 2007, is based solely on the report of the other auditor-Talbert and Johnson, PC.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.

During the audit of the year-end inventory balances, the inventory reported in the financial states has inconsistency with vouchers. The account balance of boat stock number 8063, 8114, 8312, 8444 and 8775 do not match with the amount on the voucher provided by vendor. The misstatement results in $81910 understatement in inventory accounting. In...
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