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Unformatted text preview: the auditor’s work, indicating the auditing
standards followed and expressing an opinion as to whether an entity’s ﬁnancial
statements are fairly presented in accordance with agreed-upon criteria (e.g.,
Risk of material misstatement. The pre-audit risk that the entity’s ﬁnancial
statements contain a material misstatement whether caused by error or fraud.
Unqualiﬁed/unmodiﬁed audit report. A “clean” audit report, indicating the
auditor’s opinion that a client’s ﬁnancial statements are fairly presented in
accordance with agreed-upon criteria (e.g., GAAP). www.mhhe.com/
mes25435_ch01_001-032.indd 26 Visit the book’s Online Learning Center for a multiple-choice quiz that will allow you to assess your
understanding of chapter concepts. 26/05/11 9:24 PM Conﬁrming Pages Chapter 1 An Introduction to Assurance and Financial Statement Auditing 27 R EVIEW QUESTIONS
LO 10 1-1 Why is studying auditing different from...
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