Which of the following statements is NOT true about the opinion of the auditor on the financial statements?

Select one:

a. The auditor is responsible for the detection and prevention of frauds and errors in financial statements.

b. The auditor should examine whether recognized accounting principles have been consistently applied in preparation of the financial statements.

c. The auditor should express an opinion on the financial statements.

d. The opinion is not guarantee of the future economic viability of the company.

During the current year audit the audit team is concerned that one of the clients (ABC Limited) is not recording it sales correctly for the past year.

The audit team contacted all customers of ABC Limited who purchased large value items over 2 years ago. All the customers confirmed in writing that they had purchased the items from ABC Limited and provided the sales invoices.

The audit partner is likely to dismiss the value of the audit evidence gathered by the audit team because the audit evidence lacks:

Select one:

a. Relevance.

b. Timeliness.

c. Sufficiency.

d. Reliability.

When auditors wish to issue and unqualified opinion but highlight that the entity adjusted/changed its method of accounting for software development costs, the auditor would be best advised to identify the change in the:

Select one:

a. Emphasis-of-matter paragraph.

b. Introduction paragraph.

c. Opinion paragraph.

d. Other-matter paragraph.

The auditor found numerous unsystematic errors in the preparation of the financial statements. However, none of the errors had a material impact on the financial statements overall. However, the audit could only assess 50% of the financial documents upon which the preparation of the financial statements were based. Under the conditions above the audit is most likely to issue a(n):

Select one:

a. Material opinion.

b. Unqualified opinion.

c. Disclaimer of opinion.

d. Unqualified opinion with exceptions.