Which of the following representations does an auditor make when he or she issues an unmodified audit opinion?
A) The financial report has been prepared in accordance with applicable accounting standards.
B) The financial report has been prepared in accordance with Australian auditing standards.
C) The financial report has been prepared in accordance with Australian Securities Exchange listing requirements.
D) The financial report has been audited at the lowest materiality level possible.

Question

Quizplus · Accepted Answer

An auditor making an unmodified audit opinion represents that the financial report has been prepared in accordance with applicable accounting standards. This means that the financial report is free from material misstatement and is fairly presented in accordance with the financial reporting framework. Therefore, option A is correct. Option B is incorrect because the auditor is required to comply with Australian auditing standards, but this does not imply a representation. Option C is incorrect because compliance with Australian Securities Exchange listing requirements does not guarantee that the financial report is free from material misstatement or fairly presented. Option D is incorrect because materiality level is a judgment made by the auditor but does not imply a representation.

Which of the Following Representations Does an Auditor Make When