What are the types of audit report opinions? When should an auditor issue each report?
Opinion is a certain type of agreement or disagreement on any
matter. In audit there basically four types of audit report
opinions.
These are as follows :
# Qualified opinion is given/issued by the auditor whenever the auditors find any conclusive evidence of materials misstatement or when the auditor is unable to obtain evidences to base an opinion in which auditors can say that the financial statements are free from material misstatement.
# Disclaimer of opinion is issued by the auditor whenever proper correct and sufficient audit evidence is not obtained by auditor and now the auditor issues a disclaimer of opinion that there can certain material misstatement in the financial statements.
# Adverse opinion is always issued by auditor whenever the auditor obtains certain conclusive evidence which proves that there are surely material misstatement in the financial statements.
#Unqualified opinion is given/issued by the auditor whenever there are conclusive evidences found by the auditor to prove that all the financial statements are free from any material misstatements.
What are the types of audit report opinions? When should an auditor issue each report?
An independent auditor is issuing an audit report for a governmental entity and plans to issue separate reports on internal control over financial reporting and compliance with laws and regulations. The auditor should do which of the following? Group of answer choices Report to the governing authority that separate reports will be issued. Issue the same opinion in each report. State in the audit report that separate reports will be issued. Obtain permission from the audit committee to issue separate...
Question 4: (25 marks) There are different types of auditor opinions, one of which they must express in their audit report once they will complete their audit process. List and briefly discuss the different types of auditor opinions. (15 marks) Identify that under following cases what types of opinions can be expressed by the auditor? Support your answer with discussion. (10 marks) Case A The auditor noticed that inventory of Alpha Company faces a write-down due...
When an issue is properly disclosed in a client's financial statements, the auditor should issue which one of the following audit opinions based on doubt that the client can continue as a going concern. O Unmodified with qualified emphasis-of-matter: yes | qualified: yes O Unmodified with qualified emphasis-of-matter: noſ qualified: yes o Unmodified with qualified emphasis-of-matter: yes qualified: no o Unmodified with qualified emphasis-of-matter: no qualified: no
4. What are the types of audit report, in special case, which audit report should be released?
What conditions must be present for an auditor to be able to issue a standard unqualified audit report similar to the ones presented in Exhibit 15.1?
The auditor's responsibility section of the standard audit report states that the auditor is (15 A) responsible for the financial statements and the opinion on them B) responsible for the financial statements C) responsible for the opinion on the financial statements .D) jointly responsible for the financial statements with management If the balance sheet of a private company is dated December 31, 2011, the audit report is dated February (16 8, 2012, and both are released on February 15, 2012,...
What type(s) of audit opinion(s) must an auditor issue when the client's financial statements are materially and pervasively misstated? O Qualified: yes | Adverse: yes O Qualified: yes | Adverse: no O Qualified: no | Adverse: no O Qualified: no | Adverse: yes
If the auditor decides that steps should be taken to prevent further reliance on the financial statements and audit report due to subsequent events after issuance of the audit report, the auditor should not try to obtain client cooperation, but should immediately notify any regulatory agency having jurisdiction over the client, such as the SEC, that the audit report should no longer be associated with the client’s financial statements. a. True b. False
When creating an audit program and designing audit procedures, _ an auditor also decides how to select appropriate items for removal from the test sample. the auditors should defer sample selection to the internal auditors. an auditor also decides how to select appropriate items for testing. the auditors should consider use of the cheapest statistical selection methods possible, to lower the cost of the audit. Next Question 7 0.5 pts A representative audit sample is unlikely to provide a reasonable...
What is the purpose of a disclaimer of opinion? In what situations would an auditor issue a disclaimer of opinion? Why should the auditor ordinarily disclaim an opinion if the client imposes significant scope limitations on the audit procedures?