Question

In: Accounting

Under what circumstances is an auditor required to provide an unmodified audit opinion?

Under what circumstances is an auditor required to provide an unmodified audit opinion?

Solutions

Expert Solution

Answer

An audit opinion is a statement given by the auditors after examining the financial statements of an entity. The Audit opinion is important for stakeholders like shareholders, debt holders, banks and regulators and are closely by these stakeholders.

Audit opinions can be broadly classified into 2 main categories -

1) Unmodified Audit Opinion

2) Modified Audit Opinion (which can include Qualified Opinion, Adverse Opinion or Disclaimer of Opinion)

Unmodified Audit Opinion

The auditors give an unmodified audit opinion when the financial statements of the entity have been prepared in compliance with the financial reporting framework considering all material aspects and present a true and fair view of the financial transactions of the entity. Thus, the circumstances under which an unmodified audit opinion is given are -

1) The finacial statements have been prepared in compliance with the financial reporting framework / regulatory reporting framework / applicable accounting standards for the county in all material aspects.

2) The financial statements give a true and fair view of the financial transactions of the entity.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Provide your opinion on the impact of giving an unmodified (“clean”) audit opinion when in fact...
Provide your opinion on the impact of giving an unmodified (“clean”) audit opinion when in fact a modified audit opinion should have been given.   Provide your opinion on the impact of giving a modified audit opinion when in fact an unmodified opinion should have been given.  There is no reach too small when discussing who or what is impacted.
Provide your opinion on the impact of giving an unmodified (“clean”) audit opinion when in fact...
Provide your opinion on the impact of giving an unmodified (“clean”) audit opinion when in fact a modified audit opinion should have been given. Provide your opinion on the impact of giving a modified audit opinion when in fact an unmodified opinion should have been given. There is no reach too small when discussing who or what is impacted.
. What type of audit opinion (unmodified, unmodified with emphasis of matter paragraph, disclaimer, qualified or...
. What type of audit opinion (unmodified, unmodified with emphasis of matter paragraph, disclaimer, qualified or adverse) would be appropriate for each of the following independent scenarios? (a)  There is an uncertainty related to a pending exceptional litigation matter that is adequately disclosed in the notes to the financial statements. (b) The client’s records are inadequate and the auditor is unable to obtain sufficient and appropriate audit evidence. (c)   There is a material uncertainty that casts a significant doubt on the...
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
State the audit opinion that is required in each of the following circumstances and levels of...
State the audit opinion that is required in each of the following circumstances and levels of materiality: (i) Circumstance: The auditor is unable to obtain sufficient appropriate evidence concerning sales and inventory levels. Level of materiality: Material and pervasive. (ii) Circumstance: The auditor and management disagree about the application of accounting policies. Level of materiality: Material and pervasive. (iii) Circumstance: The auditor and management disagree about a disclosure. Level of materiality: Material but not pervasive (iv) Circumstance: The auditor is...
Question: The auditor is required to express an opinion on a set of financial statements. Audit...
Question: The auditor is required to express an opinion on a set of financial statements. Audit risk is the probability that the auditor will express an incorrect opinion resulting in financial loss to persons acting upon the audit opinion given. There are laws and regulations in place which provide protection for stakeholders who suffer losses from reliance on the auditor’s report which may be found “lacking”. In reference to the legal and regulatory framework of the auditing profession, what are...
Question: The auditor is required to express an opinion on a set of financial statements. Audit...
Question: The auditor is required to express an opinion on a set of financial statements. Audit risk is the probability that the auditor will express an incorrect opinion resulting in financial loss to persons acting upon the audit opinion given. There are laws and regulations in place which provide protection for stakeholders who suffer losses from reliance on the auditor’s report which may be found “lacking”. In reference to the legal and regulatory framework of the auditing profession, what are...
1. The auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states:...
1. The auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states: a) that the audit is designed to obtain reasonable assurance as to whether the financial statements are free of material misstatement whether due to fraud or error b) that the procedures performed were specified by generally accepted auditing standards c) that the financial statement audit includes procedures sufficient to express an opinion on whether the company's internal control over financial reporting is effective d)all...
What goes in the standard unmodified opinion audit report for nonpublic companies? Specifically, what is in...
What goes in the standard unmodified opinion audit report for nonpublic companies? Specifically, what is in the content of the introductory paragraph? management’s responsibility paragraph, and the auditor’s responsibility paragraph.
The auditor is required to express an opinion on a set of financial statements. Audit risk is the probability that the auditor will express an incorrect opinion resulting in financial loss to persons acting upon the audit opinion given.
The auditor is required to express an opinion on a set of financial statements. Audit risk is the probability that the auditor will express an incorrect opinion resulting in financial loss to persons acting upon the audit opinion given. There are laws and regulations in place which provide protection for stakeholders who suffer losses from reliance on the auditor’s report which may be found “lacking”.In reference to the legal and regulatory framework of the auditing profession, what are the circumstances...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT