A careful reading of an unmodified opinion audit report indicates severalimportant phrases. Explain why each of the following phrases or clausesis used rather than the alternative provided:a. "The accompanying financial statements present fairly, in allmaterial respects, the financial position" rather than "The financialstatements mentioned above are correctly stated.""Present fairly""Correctly stated""Financial position"implies absolute accuracy, whereas themisstatements exist."No material misstatements""Present fairly" A careful reading of an unmodified opinion audit report indicates severalimportant phrases. Explain why each of the following phrases or clausesis used rather than the alternative provided:a. "The accompanying financial statements present fairly, in allmaterial respects, the financial position" rather than "The financialstatements mentioned above are correctly stated.""Present fairly"alternative report states that no material misstatements exist.implies absolute accuracy, whereas thefraud couldno material misstatementsno misstatements

An unmodified opinion, in the context of an audit or financial statement review, is a type of audit…

A careful reading of an unmodified opinion audit report indicates several important phrases. Explain why each of the following phrases or clauses is used rather than the alternative provided: a. "The accompanying financial statements present fairly, in all material respects, the financial position" rather than "The financial statements mentioned above are correctly stated."

A careful reading of an unmodified opinion audit report indicates several important phrases. Explain why each of the following phrases or clauses is used rather than the alternative provided: a. "The accompanying financial statements present fairly, in all material respects, the financial position" rather than "The financial statements mentioned above are correctly stated."

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports On Financial Statements

Section: Chapter Questions

Problem 41RSCQ

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Question

A careful reading of an unmodified opinion audit report indicates several
important phrases. Explain why each of the following phrases or clauses
is used rather than the alternative provided:
a. "The accompanying financial statements present fairly, in all
material respects, the financial position" rather than "The financial
statements mentioned above are correctly stated."
"Present fairly"
"Correctly stated"
"Financial position"
implies absolute accuracy, whereas the
misstatements exist.
"No material misstatements"
"Present fairly"

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