Audit 1 Module 5 - Modified Opinions Due To FS Issues

Question 1

Material misstatement arises in relation to the following:

Answer 1

Appropriateness of accounting policies
Application of accounting policies
Appropriateness of the FS presentation

Question 2

If a company issues financial statements that report to present financial position and results of operations but omits the related statement of cash flows the auditor will normally conclude that the Omission requires a

Answer 2

Qualified opinion

Question 3

Which phrase would an auditor of a non-issue were most likely include in the auditors report when expressing a qualified opinion due to an inadequate disclosure

Answer 3

Except for the omission of the information described in the basis for qualified opinion paragraph

Question 4

When an auditor expresses an adverse opinion opinion should include

Answer 4

Direct reference to a separate section disclosing the basis for the opinion