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whether auditor should be blamed when a company which they have expressed an unmodified audit opinion...

whether auditor should be blamed when a company which they have expressed an unmodified audit opinion fails ? explain

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An unmodified opinion is an independent auditor's judgement that a company's financial statements are truly, fairly and appropriately presented without any exceptions and in compliance with accounting standards.It is the most common type of auditors report.

However it does not judge the financial position of the company or interpret financial data.The auditor's opinion has nothing to do with the performance of the company(whether it is running losses or going bankrupt) but to only report whether the company has appropriately presented their financials without any manipulation. It is just a opinion in the audit report which states that the company's financial statements conform to generally accepted accounting principles(GAAP) and have disclosed all the financial data without hiding any of the facts.

Therefore if a company fails , it is not the responsibility of the auditors as it has nothing to do with the auditor expressing an unmodified opinion.

ekkarill92 answered 8 months ago
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