"The audit opinion is placed at the beginning of the auditors' report to give greater prominence as to whether the financial statements are true and fair in accordance with the applicable financial reporting framework. "

Source: Accountants Today Jan/Feb 2018

REQUIRED:

(a) Identify and briefly explain THREE (3) circumstances that may lead an auditor to include an emphasis of matter paragraph in the audit report.

(b)Referring to ISA 750 - Modifications of the opinion in the Independent Auditor's Report, describe THREE (3) other types of audit opinion that can be issued if the issuance of unqualified opinion is inappropriate. Provide an example in terms of reasons or causes for issuing each type of audit opinion.

(c)Auditor's judgment about the nature of matter giving rise to the modification and the pervasiveness of its effects or possible effects on the financial statements could influence the type of opinion to be expressed. Fill up the table provided below with the appropriate type of audit opinion.

Auditor's judgment about the Nature of matter giving rise to pervasiveness of its effects the modification Material but not Material and pervasive pervasive Financial statements are (i) (ii) materially misstated Inability to obtain sufficient (iii) (iv) and appropriate audit evidence