After completing a financial statement audit, the auditor needs to assess the situation to determine the proper type of report to issue. Expressing an independent opinion on the fairness of financial statements is an attestation service most frequently provided by auditors. The opinion is expressed in the auditors' report. Audit reports can be unmodified or modified. A report with an unmodified opinion may be a "standard report" or can include an emphasis-of-matter paragraph. A modified report can have an extra explanatory paragraph in connection with a qualified opinion, adverse opinion, or disclaimer of opinion.

Match each situation with the appropriate type of opinion to be issued

1. Adverse Opinion

2. Unqualified Opinion with an emphasis-of-Mater Paragraph

3. Unmodified Opinion

4. Adverse Opinion

5. Disclaimer of Opinion

A. Auditors have obtained sufficiently appropriate evidence to conclude that the financial statements are not materially misstated

B. Auditors have doubt about a company's ability to continue as a going concern

C. The client has elected to not follow GAAP

D. A material misstatement is considered pervasive

E. Auditors determine that the possible effects on the financial statements of the inability to obtain sufficient evidence (i.e. a scope limitation) could be both material and pervasive

Answer rating: 100% (QA)

1 C 2 B 3 A 4 D 5 E explain 1 Adverse Opinion The auditor has found that the client has not fo... View the full answer