chapt 4 modifictation to opinion in audit report

Question 1

a scope and opinion qualification can be issued only when what?

Answer 1

the auditor has been unable to accumulate all of the evidence suffience to support an opinion on the FSs

Question 2

qualified report anc take what 2 forms

Answer 2

1. ualification of both scope and opnion 2. qualificatoin of opinion alone

Question 3

how is adverse different from disclaimer?

Answer 3

disclaimer only arises from lack of knowlege while adverse must have knowlege that FS not fairly stated

Question 4

a disclaimer or adverse report must be used when?

Answer 4

if auditor belieives the condition being reporte don is highly material to the FSs as a whole

Question 5

the use of qualification of opinion alone is restricted to situations in which?

Answer 5

the FSs are not stated in accordance with GAAP

Question 6

when is an adverse opinion used?

Answer 6

only when auditor believes overall FS ar so materially ;misstated or misleading that do not present fairly the financial position or results of operations and cash flows in conformity with GAAP

Question 7

When issue qualified report…auditor must use what term in the opinion paragraph

Answer 7

except for

Question 8

what are the 3 conditions requiring a modification to the audit opinion?

Answer 8

1. scope has been restricted 2. FSs have not been prepared in accordance with GAAP 3. auditor is not independent