What is adverse opinio and qualified opinion? How to check payables and receivables?

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Accepted Answer

Adverse and qualified opinions in auditing and how to check payables and receivables.

Adverse opinion is given when the financial statements are materially misstated and the auditor is unable to obtain sufficient evidence to support the amounts and disclosures in the statements.
Qualified opinion is given when the financial statements are fairly presented except for a specific matter that is disclosed in the opinion.
To check payables, review the accounts payable aging report and ensure that the balances are accurate and up-to-date.
To check receivables, review the accounts receivable aging report and ensure that the balances are accurate and up-to-date.
Perform analytical procedures to identify any unusual trends or fluctuations in the balances of payables and receivables.

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