What types of Audit opinions be formed by Auditor?

Question

Accepted Answer

Audit opinions can be unqualified, qualified, adverse, or disclaimer.

Unqualified opinion: Auditor concludes that the financial statements are presented fairly.
Qualified opinion: Auditor concludes that there is a limitation in scope or a departure from accounting standards.
Adverse opinion: Auditor concludes that the financial statements are materially misstated and not presented fairly.
Disclaimer opinion: Auditor is unable to form an opinion due to significant limitations or uncertainties.
Examples: Unqualified opinion - 'The financial statements present fairly in all material respects.' Adverse opinion - 'The financial statements are materially misstated.'

Accepted Answer

1.Unqualified opinion - when no material misstatements in financial statements and obtains true & fair view of presentation 
2. Qualified opinions - obtains sufficient appropriate audit evidence but found misstatements that are material but not have pervasive effect
3. Adverse opinion - founded misstatements were material and have pervasive effect on financial statements
4. Disclaimer of opinion - when auditor unable to obtain sufficient appropriate audit evidence and possible effect of undetected misstatements would be material and pervasive effect

What types of Audit opinions be formed by Auditor?

Popular interview questions of Audit Executive

Top HR questions asked in Krupa Sagar Audit Executive