Find an example of an audit report ( dated within the last two years) for a real

Question

Find an example of an audit report ( dated within the last two years) for a real company that either has

1. A modified opinion (Qualified or Adverse) or is a Disclaimer of opinion

OR

2. Contains an unmodified opinion and an Emphasis of Matter paragraph

OR

3. Contains a reference to component auditors

OR

4. Is an audit report for a non-issuer that follows the format of the Clarified AICPA Standards effective 12/15/2012.

please submit a copy of the report AND ONE PARAGRAPH DESCRIBING WHAT YOU FOUND THAT DEPARTS FROM THE STANDARD UNMODIFIED AUDIT REPORT.

Explanation / Answer

Links for the Modified opinion (Adverse) Audit Report : https://www.northwesternmutual.com/~/media/nmcom/files/financial%20information%20and%20reports/consolidated%20financial%20statements.ashx?la=en

(Link not works please search "northwesternmutual.audit report" in Google.

Since the Paragrapgh under the Audit Report itseld is self-explanatory, we have reproduce the same hereunder,

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

The accompanying consolidated statutory financial statements include the accounts of The Northwestern Mutual Life Insurance Company (“NM”) and its wholly-owned subsidiary, Northwestern Long Term Care Insurance Company (together, “the Company”). All intercompany balances and transactions have been eliminated. The Company offers life, annuity, disability and long-term care insurance products to the personal, business and estate markets throughout the United States of America.

These financial statements were prepared in accordance with accounting practices prescribed or permitted by the Office of the Commissioner of Insurance of the State of Wisconsin (“statutory basis of accounting”), which are based on the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”). Financial statements prepared on the statutory basis of accounting differ from financial statements prepared in accordance with generally accepted accounting principles (“GAAP”), primarily because on a GAAP basis: (1) certain policy acquisition costs are deferred and amortized, (2) most bond and preferred stock investments are reported at fair value, (3) policy benefit reserves are established using different actuarial methods and assumptions, (4) deposit-type contracts, for which premiums, benefits and reserve changes are not included in revenue or benefits as reported in the statements of operations, are defined differently, (5) majority-owned, non-insurance subsidiaries are consolidated, (6) changes in deferred taxes are reported as a component of net income, (7) no deferral of realized investment gains and losses is permitted and (8) “nonadmitted” assets are excluded from surplus. See Note 2 for more information regarding on admitted assets.   The effects on the Company’s financial statements attributable to the differences between the statutory basis of accounting and GAAP are material.

The Consolidated financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Office of the Commissioner of Insurance of the State of Wisconsin, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the consolidated financial statements of the variances between the statutory basis of accounting described below and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

In Auditors opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the consolidated financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2015 and 2014, or the results of their operations or their cash flows for each of the three years then ended.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.