audit opinion

Question 1

modified opinion

Answer 1

material misstatement

Question 2

qualifies opinion

Answer 2

the misstatement is material but not pervasive (TFV except for…)

Question 3

adverse opinion

Answer 3

misstatement is material and pervasive (do not give a TFV)

Question 4

inability to provide sufficient appropriate evidence

Answer 4

the auditor doesn’t have appropriate evidence to form an opinion

Question 5

disclaimer of opinion

Answer 5

the effect of any possible misstatement is material and pervasive (do not express an opinion)

Question 6

material but not pervasive

Answer 6

the matter id material to an area of FS but doesn’t affect the remainder

Question 7

material and pervasive

Answer 7

• effects not confined to specific elements
• if confined they represent a substantial proportion of FS
• disclosures, fundamental to users understanding of the FS

Question 8

adverse opinion

Answer 8

when a misstatement is material and pervasive, the FS don’t give a TFV

Question 9

disclaimer of opinion

Answer 9

when auditor hasn’t obtained appropriate evidence and effects of any misstatement could be pervasive
- auditor doesn’t express opinion on the FS

Question 10

unmodified opinion

Answer 10

material uncertainty related to going concern

Question 11

emphasis matter of paragraph

Answer 11

a matter that has bee disclosed in the financial statements