CA Inter P5 · Chapter 8 · Question 1 of 13
Under SA 700, the auditor expresses an unmodified opinion when:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The auditor concludes that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework
Explanation
SA 700 requires an unmodified opinion when the auditor concludes that the financial statements are prepared in all material respects in accordance with the applicable framework. Immaterial misstatements may exist. Profitability and representations alone do not determine the type of opinion.
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