When the auditor issues an adverse opinion, the auditor should state in the opinion paragraph, that...

Transcribed Image Text:

When the auditor issues an adverse opinion, the auditor should state in the opinion paragraph, that in the auditor's opinion, because of the significance of the matter described in the basis for adverse opinion paragraph, the financial statements are not presented fairly in accordance with the applicable reporting framework because of the significance of the matter described in the basis for adverse opinion paragraph, the auditor has not been able to obtain sufficient appropriate evidence to provide a basis for an audit opinion, and accordingly, the auditor does not express an opinion on the financial statements except for the effects of the matter described in the basis for modification paragraph, the financial statements are presented fairly, in all material respects, in accordance with the applicable reporting framework the financial statements are presented fairly, in all material respects, in accordance with the applicable reporting framework The auditor must evaluate whether the financial statements are consistent with the requirements of the applicable financial reporting framework and must also consider the overall presentation, structure, and content of the financial statements the accounting policies selected are consistent with management's policies the accounting estimates made by management are predictable whether the financial statements, including the footnotes, represent the underlying transactions in a manner that achieves fair presentation the financial forecasts made by management are accurate both A and D both B and C both D and E When the auditor issues an adverse opinion, the auditor should state in the opinion paragraph, that in the auditor's opinion, because of the significance of the matter described in the basis for adverse opinion paragraph, the financial statements are not presented fairly in accordance with the applicable reporting framework because of the significance of the matter described in the basis for adverse opinion paragraph, the auditor has not been able to obtain sufficient appropriate evidence to provide a basis for an audit opinion, and accordingly, the auditor does not express an opinion on the financial statements except for the effects of the matter described in the basis for modification paragraph, the financial statements are presented fairly, in all material respects, in accordance with the applicable reporting framework the financial statements are presented fairly, in all material respects, in accordance with the applicable reporting framework The auditor must evaluate whether the financial statements are consistent with the requirements of the applicable financial reporting framework and must also consider the overall presentation, structure, and content of the financial statements the accounting policies selected are consistent with management's policies the accounting estimates made by management are predictable whether the financial statements, including the footnotes, represent the underlying transactions in a manner that achieves fair presentation the financial forecasts made by management are accurate both A and D both B and C both D and E