What Type of Reports Can an Auditor Issue If They

question 76

Essay

What type of reports can an auditor issue if they cannot provide an unqualified audit report?
The three types of reports other than unqualified are:
1.Qualified.The auditor's opinion is qualified because of either a scope limitation or a non-pervasive departure from Generally Accepted Accounting Principles (GAAP), but overall the financial statements were presented fairly.
2.Disclaimer.The auditor disclaims an opinion on the financial statements either because there is insufficient appropriate evidence to form an opinion on the overall financial statements or because there is a lack of independence.
3.Adverse.The auditor's opinion states that the financial statements are not presented fairly in conformity with GAAP because the departure materially affects the overall financial statements.

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Definitions:

Systematic Study

an approach to understanding phenomena through structured, methodical investigation and analysis.

Group Dynamics

The study of the behavioral and psychological processes that occur within a social group or between social groups.

Teamwork

The collaborative effort of a group of people working together to achieve a common goal or complete a task in the most effective and efficient way.

Individual Contributors

Employees who are responsible for completing tasks and projects on their own, contributing to the organization's goals through their individual efforts.