Audit Opinions

Question 1

What is an unmodified opinion>

Answer 1

Auditor concludes FSs are prepared in all material respects, in accordance with financial reporting framework

Question 2

What is meant by material misstatement?

Answer 2

Appropriateness of accounting policies

Appropriateness of disclosures in FSs

Question 3

Modified audit opinion (material but not pervasive)

Answer 3

Qualified opinion

Question 4

Modified audit opinion (material and pervasive) due to insufficient appropriate evidence?

Answer 4

Disclaimer of opinion

Question 5

Modified audit opinion (material and pervasive) due to material misstatement?

Answer 5

Adverse opinion

Question 6

What is emphasis of matter?

Answer 6

Matter disclosed in FSs that is of great significance

Question 7

Subsequent event criteria?

Answer 7

Explain issue
Whether it occured during year or afterwards
Calculate materiality - appropriate treatment
List audit procedures

Question 8

Provisions criteria?

Answer 8

Explain issue
Materiality and explain IAS 37 criteria
What opinion issued
Basis of opinion

Question 9

Breach of regulations criteria?

Answer 9

Explain issue
Whether it occured during year or afterwards
Calculate materiality - appropriate treatment
What opinion issued
Basis of opinion

Question 10

KAM?

Answer 10

Areas higher assessed ROMM
Singificant auditor judgement relating to areas in FSs which were related to significant management judgment
Effect on audit significant events

WHAT THE ISSUE IS - describe issue
WHY THE ISSUE IS A KAM - refer to intro on KAM
HOW ISSUE WAS ADDRESSED - audit procedures