Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 65

Audit Report Deficiencies: Accounting Change and Uncertainty. The following auditors' report was drafted by Quinn Moore, a staff auditor with Tyler Tyler, CPAs, at the completion of the audit of the financial statements of Park Publishing Company for the year ended September 30, 2014. The engagement partner reviewed the audit documentation and properly decided to issue an unmodified opinion. In drafting the report, Moore considered the following:
• During fiscal year 2014, Park changed its depreciation method. The engagement partner concurred with this change in accounting principles and its justification, and Moore included an emphasis-of-matter paragraph in the report.
• The 2014 financial statements are affected by an uncertainty concerning a lawsuit, the outcome of which cannot presently be estimated. Moore included an emphasis-of-matter paragraph in the report to emphasize this uncertainty.
• The financial statements for the year ended September 30, 2013, are to be presented for comparative purposes. Tyler Tyler previously audited these statements and expressed an unmodified opinion.


Required:
Identify the deficiencies in the auditors' report as drafted by Moore. Group the deficiencies by section or paragraph and in the order in which they appear. Do not rewrite the report.