[Anonymous]

I had audit in college under the old AU standards when the clean report was referred to as a “Unqualified” opinion. I searched some articles and a even a couple of videos on the clarified standards, and I thought I heard them say the term in still used in some instances. Is that correct? If so, when is it used?

For instance, I noticed the following AUD MC question in Ninja: Consideration After the Report Date of Omitted Procedures” Question #: 1559. Six months after issuing an unqualified opinion on audited financial statements, an auditor discovered that the engagement personnel failed to confirm several of the client’s material accounts receivable balances. The auditor should first:

A: Request the permission of the client to undertake the confirmation of accounts receivable.

B: Perform alternative procedures to provide a satisfactory basis for the unqualified opinion.

C: Assess the importance of the omitted procedures to the auditor’s ability to support the previously expressed opinion.

D: Inquire whether there are persons currently relying, or likely to rely, on the unqualified opinion.

The answer is “C,” but the Ninja explanation uses the term “unqualified.” I have the Wiley book, which has the exact same question, and it uses the term “unqualified.” I assume it’s not a coincidence.

Any help and clarification on this matter would be appreciated! Thanks!

[okcpa2015]

Just off the top of my head, PCAOB standards still use the term “Unqualified” where as the AICPA has move to “Unmodified” to confirm more with International standards.

FAR - 91
REG - 88
AUD - 98
BEC - 88

[Anonymous]

Thanks okcpa2015.

I thought that's what they said in one of the videos I watched. My next question would be, PCAOB standards don't override the SAS, do they? I guess I'm not exactly sure how the two inter-related.

[okcpa2015]

PCAOB apply to issuers (publicly traded companies). SAS applies to private companies not covered by another standards (Such as Government auditing standards).

FAR - 91
REG - 88
AUD - 98
BEC - 88

[Anonymous]

Yes, it's used under IAS too.

[Author]

Replies