Forming an Opinion and Reporting on Financial Statements

1. Why is it important that an auditor issue an audit report?

2. How does one distinguish the audit report from other reports issued by the company?

3. What is the importance of an audit opinion?

4. Why is piecemeal opinion prohibited from being issued?

5. How do materiality and pervasiveness aid as a decision guide for determining the type of opinion to be expressed?

6. What kinds of opinion can be expressed when the going concern assumption is in doubt?

7. Why might an auditor decide to disclaim an opinion?