When an Auditor concludes that the financial statements of a company give a true and fair view, in accordance with the identified financial reporting framework, then he should express an unqualified opinion in his Auditor’s Report on those financial statements.

REQUIRED: 

(a) Describe the circumstances in which EACH of the following should be expressed in an Auditor’s Report.

(i) Qualified opinion;

(ii) Disclaimer of opinion;

(iii) Adverse opinion. 

(b) Auditors often use analytical procedures as substantive procedures to reduce detection risk relating to specific financial statement assertions.

Explain FOUR (4) factors that determine the extent of reliance that the Auditors may place on analytical