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    Question

    SA 700 guides auditors on forming an opinion and

    reporting on financial statements. When an unmodified opinion is given, the report must include a section titled “Opinion” stating clearly whether the FS present a true and fair view. Why is this explicit statement critical?
    A It provides users with the auditor’s formal conclusion, ensuring transparency and accountability Correct Answer Incorrect Answer
    B To help tax authorities calculate liabilities Correct Answer Incorrect Answer
    C To improve audit fee negotiation Correct Answer Incorrect Answer
    D To comply with GST Correct Answer Incorrect Answer
    E None Correct Answer Incorrect Answer

    Solution

    • The “Opinion” section is the crux of the audit report — without it, stakeholders cannot rely on the auditor’s conclusion.

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