Question
When the auditor, having obtained sufficient appropriate
audit evidence, concludes that misstatements, individually or in aggregate, are both material and pervasive to the financial statements, he/she shall express which type of audit opinion? Read the following passage and answer the next 4 question (Q23-Q26) The purpose of an audit is to enhance the degree of confidence of intended users of the financial statements. The aforesaid purpose is achieved by the expression of an independent reporting by the auditor as to whether the financial statements exhibit a true and fair view of the affairs of the entity. Thus, an audit report is an opinion drawn on the entity’s financial statements to make sure that the records are true and fair representation of the transactions they claim to represent. This involves considering whether the financial statements have been prepared in accordance with an acceptable financial reporting framework applicable to the entity under audit. It is also necessary to consider whether the financial statements comply with the relevant statutory requirements. The main users of audit report are shareholders, members and all other stakeholders of the company. SA 700 (Revised) - “Forming an Opinion and Reporting on Financial Statements”, deals with the auditor’s responsibility to form an opinion on the financial statements. It also deals with the form and content of the auditor’s report issued as a result of an audit of financial statementsSolution
Adverse Opinion - The auditor shall express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements. Qualified opinion - The auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are material, but not pervasive , to the financial statements; or the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, but the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive. Disclaimer of Opinion - The auditor shall disclaim an opinion when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive. 
Select the option that is related to the fifth letter-cluster in the same way as the second letter-cluster is related to the first letter-cluster and th...
Select the Venn diagram that best represents the relationship among the given set of classes.
Earth, Country, State
Complete the missing portion of the given pattern by selecting from the given options.
If the seventh day of a month is three days earlier than Wednesday, what day will it be on the nineteenth day of the month?
TCKS is related to WFNV in a certain way based on the English alphabetical order. In the same way, YHPX is related to BKSA. To which of the following is...
A cube is made by folding the given sheet. In the cube so formed, which pair of letters will be on the opposite faces?
Select the set in which the numbers are related in the same way as are the numbers of the following sets.
(NOTE: Operations should be performed o...
F is the brother of J. E is the sister of D. K is the sister of L. D is the son of L. J is the father of E. How is D related to F?
In the following number-pairs, the second number is obtained by applying certain mathematical operations to the first number. Select the set in which th...
Select the correct mirror image of the given figure when the mirror MN is placed to the right side of the figure.
