The audit report presented in exhibit 11 is the

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Unformatted text preview: misstatements are judged to be material, the auditor will request that the client correct the misstatements. If the client refuses, the auditor issues an opinion that explains that the financial statements are materially misstated. If the uncorrected misstatements do not cause the financial statements to be materially misstated, or if the client is willing to correct the misstatements, the auditor issues an unqualified (i.e., “clean”) report. The Unqualified/Unmodified Audit Report The unqualified audit report is by far the most common type of report issued.9 In this context, unqualified means that, because the financial statements are free of material misstatements, the auditor does not find it necessary to qualify his or her opinion about the fairness of the financial statements. While it is fairly common for the auditor to find misstatements needing correction, audit clients are almost always willing to make the adjustments necessary to receive a clean opinion. Exhibit 1–1 presents an audit report issued on EarthWear Clothier’s financial s...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.

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