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    Issuing Audit Reports

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    a) What are the different types of audit reports and when should each be used?

    b) In what types of situations would an auditor be allowed to issue an unqualified audit report?

    c) To what extent is the auditor liable for misstatements in the financial statements of the audited company?

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    Issuing Audit Reports

    a) What are the different types of audit reports and when should each be used?

    Unqualified opinion: An unqualified opinion states that the financial statements are presented fairly in conformity with GAAP. However, in some instances, the standard unqualified report may be modified without affecting the unqualified opinion issued on the financial statements.

    Qualified Opinion: A qualified opinion is issued when the financial statements present the entity's financial position, results of operations, and cash flows in conformity with GAAP except for the matter of the qualification. Qualified opinions are issued, in some cases, when: (1) a scope limitation, or (2) a departure from GAAP ...

    Solution Summary

    This is a discussion on different types of audit reports and how different types are used situationally.

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