The auditor should express an unmodified opinion when the auditor concludes that the financial statements are prepared,in all material respects,in accordance with the applicable financial reporting framework.The auditor should modify his opinion if the auditor concludes that
A)based on the evidence obtained,the financial statements are not free from material misstatement
B)based on the management assertions obtained,the financial statements are not free from material misstatement
C)based on the attorney letter obtained,the financial statements are not free from material misstatement
D)he is unable to obtain reasonable evidence to conclude that the financial statements are free from material misstatement
E)he is unable to obtain sufficient appropriate evidence to conclude that the financial statements are free from material misstatement
F)both A and E
G)both B and C
H)both D and E

Question

Quizplus · Accepted Answer

An unmodified opinion is expressed when the financial statements are free from material misstatements, in all material respects, in accordance with the applicable financial reporting framework. If the auditor concludes that there are material misstatements or is unable to obtain sufficient appropriate evidence to conclude that the financial statements are free from material misstatement, then a modification to the opinion is necessary. Therefore, options A and E are correct, and F is the best choice that includes both options. Options B and C are incorrect because the attorney letter is not used to assess the financial statements' accuracy. Option D is incorrect because it implies the inability to perform an audit, which is unlikely to happen in most cases.

The Auditor Should Express an Unmodified Opinion When the Auditor