Accounting and Finance Foundations

Unit 13

Accounting and Finance Foundations Unit 13: Auditing 1009

Auditing

Chapter 30

3. Fill in the missing information.

Were any significant/material

issues discovered during the

audit?

Did the company follow

Generally Accepted Accounting

Principles (GAAP)?

Was the audit completed in

accordance with Generally

Accepted Auditing Standards

(GAAS)?

Unqualified

opinion

No. No significant/material

issues were discovered.

a. Yes. The audit was completed in

accordance with GAAS.

Qualified

opinion

Yes and no. Somewhat

significant/material issues were

discovered.

Yes and no. Although the

company followed GAAP most

of the time, there were minor

exceptions.

b.

Adverse

opinion

c. No. The company did not follow

GAAP.

No. The auditor encountered

several highly significant/

material issues that s/he could

not clarify through audit

evidence. Therefore, the audit

was not in complete accordance

with GAAS.

Disclaimer of

opinion

d.

Student Assignment

30.5.1 Audit Reports (cont’d)