An auditor normally issues an unmodified opinion when the financial statements are, in all material respects, prepared in accordance with the applicable framework and what condition also exists?
Correct answer: B. Sufficient appropriate audit evidence was obtained
- A. The entity reports a net profit
- B. Sufficient appropriate audit evidence was obtained
- C. Every transaction was examined
- D. No accounting estimate was used
Explanation
An unmodified opinion requires sufficient appropriate evidence supporting the conclusion that the statements are fairly presented under the applicable framework. Profit, complete examination of every transaction, and absence of estimates are not required.
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Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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