ACCA AA · Chapter 13 · Question 12 of 12
Under ISA 700, which of the following is included in the Basis for Opinion section of the auditor's report?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A statement that the auditor is independent of the entity in accordance with relevant ethical requirements
Explanation
The Basis for Opinion section states that the audit was conducted in accordance with ISAs, refers to the auditor's responsibilities section, includes the statement of independence and ethical compliance, and states whether the evidence obtained is sufficient and appropriate. Management's responsibilities, key audit matters and the opinion each have their own sections.
More Misstatements and the auditor's report MCQs
- Q2Under ISA 450, what should the auditor do with misstatements identified during the audit, other than those that are clearly trivial?
- Q3Draft financial statements of Tumbril Co show profit before tax of $2.0 million and total assets of $15 million. Inventory is overstated…
- Q4Under ISA 705, what type of opinion is required when the auditor concludes that misstatements are both material and pervasive?
- Q5The auditor is unable to attend the inventory count and cannot obtain sufficient appropriate evidence about inventory by alternative…
- Q6Under ISA 705, which of the following would NOT make the effects of a misstatement pervasive?