Based on the evidence gathered, if an auditor concludes all noted misstatements in the financial statements to be immaterial, individually and collectively, then the auditor would
A) resign from the engagement.
B) emphasize the errors in the audit report.
C) issue an unqualified opinion.
D) issue a qualified opinion.

Question

Quizplus · Accepted Answer

If the auditor concludes that all noted misstatements are immaterial, individually and collectively, it means that the financial statements are fairly presented. Therefore, the auditor can issue an unqualified opinion which indicates that the financial statements are presented fairly in all material respects. Resigning from the engagement or emphasizing the errors in the audit report are not necessary in this case. Issuing a qualified opinion would only be necessary if there were material misstatements that have not been corrected.

Based on the Evidence Gathered, If an Auditor Concludes All