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A disclaimer of opinion should be expressed when the possible effect of a limitation of scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and is unable to express an opinion on the financial stements.
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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.
Why an auditor's report is in form of opinion and not in form of fact?
Because the auditor's report is an opinion. Just because that one auditor thought what they did. It does not mean that all other agree. The auditor's report is a formal opinion, or disclaimer, not a fact.
What is meant by audit trail?
audit is an evaluation of a person, organization, system, process, project or product .Audits are performed to ascertain the validity and reliability of information, and also provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the person/organization/system etc. under evaluation based on work done on a test basis.Doing a trial process in audit to make it effective is audit trial.
Roles of external audit?
To check the financial statments of a company and form an opinion on whether they are free from material misstatement.
Types of qualification within the audit report?
there are alot... but in my book there r 9 nature of circumstances,limitation to scope,disclaimer,adverse,less material,very material and persuasive,disagreement,except for,possible adjustments
Could an audit report contain both disclaimer and adverse opinion?
audit cannot be an opinion only fact
What is a disclaimer of opinion?
A disclaimer of opinion is issued when an auditor is unable to express an opinion on the financial statements due to significant limitations in scope or uncertainties that prevent the auditor from obtaining sufficient evidence. It indicates a lack of assurance on the accuracy or completeness of the financial information provided.
At what point do client-imposed audit scope limitations affect the type of audit opinion issued?
It depends. In some cases, scope limitations can be "worked around" and a different audit procedure can accomplish the same objective. When that happens, there is no affect on the type of audit opinion. In other cases, the scope limitation will relate to an area that is not material to the financial statements. Again, no affect on the opinion. However - some scope limitations can prevent the auditor from gaining audit evidence to support an unqualified (clean) opinion. If that happens in a significant area, the audit opinion may have to be a "disclaimer." This is determined by the auditor in the specific situation.
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 is the purpose of audit working papers?
Audit working papers are used to support the audit work done in order to provide assurance that the audit was performed in accordance with the relevant auditing standards. They show the audit was:Properly planned;Carried out;There was adequate supervision;That the appropriate review was undertaken; & finally and most importantly;That the evidence is sufficient and appropriate to support the audit opinion.
What is an unqualified report?
unqualified report is that Audit report in which Audit opinion specify that according to according to rules and regulation the firms financial statement portray true and fair view.
What is unqualified report?
unqualified report is that Audit report in which Audit opinion specify that according to according to rules and regulation the firms financial statement portray true and fair view.
What is a diclaimer?
A disclaimer. I will not be responsible for the accuracy of this answer, nor for any damages you might incur by reading it, nor any scorn you might receive for sharing it with others. Do you mean disclaimer? It is a statement that says we are not responsible. For example; if you wrote that rubbing a potato on warts got rid of them and then posted it somewhere, the website you posted it on would probably have a disclaimer saying that whatever you say is your opinion and they are not responsible for your opinion. They are doing the opposite of claiming responsibility.
Why an auditor's report is in form of opinion and not in form of fact?
Because the auditor's report is an opinion. Just because that one auditor thought what they did. It does not mean that all other agree. The auditor's report is a formal opinion, or disclaimer, not a fact.
Is An audit report expressing an unqualified opinion generally desired by the company presenting its financial statements?
true
What are the 5 types of audit report?
+Unqualified Opinion: The financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the entity in accordance with applicable accounting standards, other mandatory professional reporting requirements, and relevant statutory and other regulations. +Emphasis of Matter: Still an unqualified opinion, but has an additional paragraph to draw the reader's attention to specific circumstances that would be useful for decision-making. +Qualified Opinion: "except for" a specific section of the financial report, the remained can be relied upon as being true and fair, free from material misstatement, and prepared in accordance with an applicable financial reporting framework. +Disclaimer of Opinion: Expressed when the possible effect of limitation of scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence on which to form an opinion an the accounts. +Adverse Opinion: Expressed when an auditor's reservations about the preparation of the financial reports are of such a magnitude that they believe the financial report, taken as a whole, is misleading and is of little use to the addressee of the financial report.
What is meant by audit trail?
audit is an evaluation of a person, organization, system, process, project or product .Audits are performed to ascertain the validity and reliability of information, and also provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the person/organization/system etc. under evaluation based on work done on a test basis.Doing a trial process in audit to make it effective is audit trial.
