Is An audit report expressing an unqualified opinion generally desired by the company presenting its financial statements?

What is unqualified audited financial statement?

Unqualified audited financial statement is set of financial statements which are audited by external financial auditors and found "True and fair view" of financial statements and clear from any fraud etc.

Presenting consolidated financial statements this year when statements of individual companies were presented last year is?

an accounting change that should be reported by restating the financial statements of all prior periods presented.

What is a qualified audit report?

An audit report is a certification that financial statements are prepared according accepted accounting standards. In case auditors disagree with any issue and state their opinion of the issue in the audit report it is called qualified audit report.

Who is primarily responsible for presenting financial statement information?

Management is initially responsible for preparing financial statements and auditors are responsible for reasonable assurance

What are the five types of reports issued by an auditor?

The auditor can issue five types of reports on financial statements: unqualified opinion, unqualified opinion with modified wording, qualified opinion, adverse opinion, or disclaimer of opinion.

What are the criteria for general acceptance of accounting principles?

Some GAAP principles are meant to improve or standardize recording and reporting of financial statements. Companies are expected to follow the GAAP principles when presenting financial statements.

How does a review differ from an audit particularly in terms of the level of assurance implied by the auditor's report?

An audit of historical financial statements is a form of attestation service in which the auditor issue a written report expressing an opinion about whether the financial statements are in material conformity with generally accepted accounting principles. When presenting information in the form of financial statements, the client makes various assertions about its financial condition and results of operations. External users who rely on those financial statements to make business decisions look the auditor's report as an indication of the statements' reliability. They value the auditor's assurance because of the auditor's independence from the client and knowledge of financial statement reporting matters. A review of historical financial statements is another type of attestation service performed by CPAs. Whereas audit provides a high level of assurance, a review service provides a moderate amount of assurance on the financial statements, and less evidence is necessary to support this level of assurance.

What is qualified and unqualified report?

The most frequent type of report is referred to as the Unqualified Opinion, and is regarded by many as the equivalent of a "clean bill of health" to a patient,[2] which has led many to call it the Clean Opinion. This type of report is issued by an auditor when the financial statements presented are free of material misstatements and are in accordance with GAAP, which in other words means that the company's financial condition, position, and operations are fairly presented in the financial statements. It is the best type of report an auditee may receive from an external auditor. A Qualified Opinion report is issued when the auditor encountered one of two types of situations which do not comply with generally accepted accounting principles, however the rest of the financial statements are fairly presented. This type of opinion is very similar to an unqualified or "clean opinion", but the report states that the financial statements are fairly presented with a certain exception which is otherwise misstated. The two types of situations which would cause an auditor to issue this opinion over the Unqualified opinion are: * Single deviation from GAAP - this type of qualification occurs when one or more areas of the financial statements do not conform with GAAP (e.g. are misstated), but do not affect the rest of the financial statements from being fairly presented when taken as a whole. Examples of this include a company dedicated to a retail business that did not correctly calculate the depreciation expense of its building. Even if this expense is considered material, since the rest of the financial statements do conform with GAAP, then the auditor qualifies the opinion by describing the depreciation misstatement in the report and continues to issue a clean opinion on the rest of the financial statements. * Scope of limitation - this type of qualification occurs when the auditor could not audit one or more areas of the financial statements, and although they could not be verified, the rest of the financial statements were audited and they conform GAAP. Examples of this include an auditor not being able to observe and test a company's inventory of goods. If the auditor audited the rest of the financial statements and is reasonably sure that they conform with GAAP, then the auditor simply states that the financial statements are fairly presented, with the exception of the inventory which could not be audited. Soure From: http://en.wikipedia.org/wiki/Auditor's_report (WIKIPEDIA)

How might changing one of the financial statements affect the other financial statements?

Is An audit report expressing an unqualified opinion generally desired by the company presenting its financial statements?

Add your answer:

What is unqualified audited financial statement?

Presenting consolidated financial statements this year when statements of individual companies were presented last year is?

What is a qualified audit report?

Who is primarily responsible for presenting financial statement information?

What are the five types of reports issued by an auditor?

What are the criteria for general acceptance of accounting principles?

How does a review differ from an audit particularly in terms of the level of assurance implied by the auditor's report?

What is qualified and unqualified report?

Is it reasonable that auditors are usually the first in line to be sued when it is proven that the unqualified financial statements of an entity contain material misstatements and as a consequence do?

How might changing one of the financial statements affect the other financial statements?

What are limitations of financial management?

What are the limitations of management?

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