What are the various audit reports an auditor can issue? What are the situations in which...

What are the various audit reports an auditor can issue? What are the situations in which the auditor should issue these reports?

Expert Solution

An auditor can issues four types of reports in different situations: (1) unqualified report (2) qualified report (3) Adverse report (4) disclaimer of opinion

unqualified reports: it is called a clean opinion, and is an audit report that is issued when an auditor determines that each of the financial records provided by company is free of any misrepresentations and biasness.

qualified report- this report is issued when a company’s financial records are not maintained according to GAAP but no misrepresentations are identified, an auditor will issue a qualified opinion.

Adverse report- This isthe financial report that can be issued to a business with an adverse opinion. This indicates that the firm’s financial records do not conform to GAAP. In addition, the financial records provided by the business have been grossly misrepresented.

disclaimer of opinion- this report is issued by an auditor when he is unable to complete an accurate audit report. There are many reasons due to which such situation arises likeas absence of appropriate financial records. When this happens, the auditor issues a disclaimer of opinion, stating that an opinion of the firm’s financial status could not be determined.

ekkarill92 answered 1 year ago

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