List and briefly explain the qualifications available to the auditor in drafting his audit report stating the circumstance in which each qualification is appropriate. Give...

      

Financial accounting, auditing

  

Answers


KevinNyabute
Disclaimer of opinion: If scope limitations are so pervasive that the auditor is not able to render an opinion on the financial statements overall, a disclaimer of opinion is issued.
Competence: Any person who intends to practice as an auditor must be thoroughly trained and must prove his/her competence. In Kenya only members of ICPAK are allowed by law to practice as auditors.
Independence: An independent auditor is who cannot give biased opinion. Total independence is likely not to be achieved but independence is important.
Integrity: A person of high integrity is a person who is honest, discrete and tactful.
Adverse opinion: This is issued when the financial statements are materially misstated in the event that when taken as a whole.
Departure from GAAP: If the auditor determines that the financial statements generally are in accordance with GAAP except for a minor departure a qualified opinion is issued.


kevinnyabute answered the question on March 5, 2018 at 08:44


Next: A butcher has a beam balance and masses 0.5kg and 2kg. How would he measure 1.5kg of meat on the balance at once
Previous: List the principal matters which auditors consider when forming an opinion on the financial statements

View More Accounting Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions