Chapter 3 LO2

Question 1

what is an unmodified opinion with emphasis of matter explanatory paragraph or nonstandard wording report?

Answer 1

complete audit took place with satisfactory results and financial statements fairly presented, but auditor believes that it is important or is required to provide additional information

Question 2

what is disclaimer report?

Answer 2

auditor is unable to form an opinion on whether the FSs are fairly presented or he is not independent

Question 3

what is qualified report?

Answer 3

auditor concludes overall finanical statements are fairly presented, but scope of audit materially restricted or applicable accounting standards were not followed in preparing the finaancial statments.

Question 4

what is adverse report?

Answer 4

auditor concludes that the financial statments were not fairly presented

Question 5

what are the Conditions for standard unmodified opinion audit report? (4)

Answer 5

1. includes all financial statements 2. Sufficient appropriate evidence accumulated. done the engagment in a way that makes him able to conclude audit performed in accordance with auditing standards 3. Financial statements are presented fairly in material respects in accordance with GAAP or other framework. adequate disclosures in footnotes and other parts of FSs 4. No circumstances requiring the addition of an emphasis-of-matter paragraph or modification of wording or auditors opinion in report