Chapter 13- Reporting and opinions

Question 1

Unmodified opinion-
given in book

Answer 1

An unmodified opinion: the auditor is satisfied that the evidence obtained is sufficient and appropriate and supports the view presented in the financial statements prepared by the company’s management.

Question 2

Modified opinion-
not given in book

Answer 2

A modified opinion: the auditor is either not satisfied with the sufficiency or appropriateness of
the evidence that has been obtained, compared with what could reasonably be expected, or has
issues with the content of the financial statements

Answer 3

qualified opinion- matrial misstatements but not pervavsive, is isolated to one area of FS

adverse- material misstatement and is pervasive, whole FS

disclaimer - there is material misstatement and is pervasive, due to limitation of scope, auditor could not obtain sufficient and appropriate evidence