The unmodified audit opinion states that the financial statements “. . . present fairly. . . in accordance with Canadian generally accepted accounting principles.”
a. Explain, from the perspective of the auditing profession, reasons why the auditor’s opinion on fair presentation of financial statements is given in reference to Canadian generally accepted accounting principles.
b. Explain, from the perspective of financial statement users, the contrasting view that the auditor’s responsibility to assess the fair presentation goes beyond a literal interpretation of whether the statements meet the requirements of Canadian GAAP.
c. Which position, part (a) or part (b), do you agree with? Why?