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?
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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 agoRelated Solutions
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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...
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d)all...
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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...
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