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Auditing Theory - Ass 6
Auditing Theory - Ass 6
Unqualified Opinion
When independent external auditors decide that the client's financial accounts include no major
misstatement, they provide an unqualified opinion. Similarly, when auditors issue an unqualified
opinion, it signifies that they have acquired sufficient suitable audit evidence to support their
conclusion that the financial statements are free of substantial errors.
In other words, auditors' unqualified judgment signifies that the company's financial statements
appear fairly in all material aspects and in line with applicable accounting rules.
In this instance, auditors will issue an unqualified opinion with an emphasis of topic paragraph
below the opinion paragraph to disclose the matter in the audit report that they consider is
noteworthy. Similarly, the emphasis of every paragraph's primary goal is to direct users' attention
to the information presented.
In other words, Auditors' unqualified opinion signifies that the financial accounts are accurate
and fairly presented in all material aspects, while Emphasis of Matter draws attention to a matter
that has previously been audited and on which sufficient acceptable audit evidence has been
acquired to reach a decision or opinion.