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The Primacy of “Present Fairly” in the Auditor's Report *
Author(s) -
Zeff Stephen A.
Publication year - 2007
Publication title -
accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1911-382X
DOI - 10.1506/e773-5521-86u6-l3m0
Subject(s) - conformity , auditor's report , audit , argument (complex analysis) , positive economics , accounting , going concern , political science , decoupling (probability) , law and economics , economics , law , engineering , biochemistry , chemistry , control engineering
In this paper, the author examines the historical evolution in the United States of the use of the term “present fairly” in the auditor's report, as well as the experience and arguments in the United States and Canada regarding the use of a “two‐part” opinion in the report. He then develops an argument for the adoption of a “two‐part” opinion, decoupling “present fairly” from conformity with generally accepted accounting principles, which would place primary emphasis on “present fairly".