When issuing an unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the:

Question

Quizplus · Accepted Answer

Choice "B" is correct. An unqualified opinion states that the financial statements are presented fairly, in all material respects. Accordingly, if the auditor believes that total misstatement (including both known and likely misstatements) is immaterial, an unqualified opinion is appropriate. Choice "A" is incorrect. Documenting misstatements in the management representation letter is not required, nor would it eliminate the need to modify the opinion if the known misstatements were material. Choice "C" is incorrect. Even if the client adjusts the financial statements to correct known misstatements, the auditor still must feel comfortable that any remaining unidentified misstatements would not be material to the financial statements before rendering an unqualified opinion. Choice "D" is incorrect. An auditor is not concerned with misstatements already corrected by the client. It is the auditor's estimate of uncorrected--and perhaps unknown--errors that affects the type of opinion rendered.

When Issuing an Unqualified Opinion, the Auditor Who Evaluates the Audit