Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 12

General Mills
Review the audit reports for General Mills found in the chapter.
a. How do the General Mills reports differ from those for Dell Computers
b. What audit opinion did General Mills receive on the financial statements
c. Describe the explanatory paragraphs in the General Mills report. Why are they included in the audit report
d. What was the audit report on the effectiveness of internal control over financial reporting
e. What is management's responsibility for the financial statements and for internal controls over financial reporting
f. What standard do the auditors use to determine whether the financial statements are materially misstated
g. What standard do the auditors use to evaluate the internal controls over financial reporting
h. What are the limitations of internal controls
i. What benefit should effective internal controls over the financial reporting process provide to outside readers of the financial statements
j. What should outside readers of the annual report conclude regarding the accuracy of the financial statements and the effectiveness of internal controls over financial reporting after reading the audit reports