- The auditors have limited scope on this section of the audit and therefore would give a qualified opinion on this section of the audit. Since it says that this matter does not over shadow the fairness of the financial statement, the audit opinion could be written as shown below.
In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to satisfy ourselves as evidence regarding the foreign affiliate investments and earnings, the balance sheet together with the notes thereon properly drawn up so as to exhibit a true and correct view of the state of the Company’s affairs as at 31 December 2013 according to the best of our information and explanations
- The auditor’s opinion of the Donedeal financial statement should a qualified opinion. This is due to the fact that the company is a going concern. The auditor’s opinion could e written as shown below.
The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As discussed in note 6 to the financial statement, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in note 16. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
- The opinion should be an unqualified one but there should be clear indications in the introductory paragraph that there is an issue of going concern because it is not guaranteed that the company will retain the contract.
- The auditor’s opinion on Perry Gaga Company financial statement should be an adverse opinion. This is due to the deviations from GAAP. The auditor’s opinion could be written as shown below.
In our opinion, because of the significance of effects of the matters described in the basis for adverse opinion paragraph, the financial statements have not been properly prepared, in accordance with the SME-FRS. In addition, in our opinion the balance sheet together with the notes thereon is not properly drawn up so as to exhibit a true and correct view of the state of the Company’s affairs as at 31 December200X according to the best of our information and explanations given to us, and as shown by the books of the Company.
- The audit is and qualified audit but the following statement would have to be included in the introductory paragraph.
We did not audit the financial statements of Fictional Company a wholly owned subsidiary, which statements reflect assets of $22,000,000 and $19,000,000 of December 31, 2013 and December 31, 2012 respectively. Total revenues amounted to $40,000,000 and $36,000,000 at the period ended December 31, 2013 and December 31, 2012 respectively. Those statements were audited by other auditors whose report has been furnished to us, and our opinion insofar as it relates to the amounts included for Fictinal Company, is based solely on the report of the other auditors.
The audit opinion could be written as follows.
In our opinion, the financial statements of Cal fractured give a true and fair view of the financial position of the Group and of the Company as of 31 December 2013 and of their financial performance and cash flows for the year then ended in accordance with Financial Reporting Standards.
- The Endless company financial statements should be given an unqualified opinion that can be written as shown below.
In our opinion, the financial statements have been properly prepared, in all material respects, in accordance with the SME-FRS. In addition, in our opinion the balance sheet together with the notes thereon is properly drawn up so as to exhibit a true and correct view of the state of the Company’s affairs as at 31st December 2006 according to the best of our information and explanations given to us, and as shown by the books of the Company.
With an emphasis of matters written as shown below.
Without qualifying our opinion, we draw attention to Note X to the financial statements. The
Company is the defendant in a lawsuit alleging infringement of certain patent rights and claiming royalties and punitive damages. The Company has filed a counter action, and preliminary hearings and discovery proceedings on both activities are in progress. The ultimate outcome of the matter cannot presently be determined, and no provision for any liability that may result has been made in the financial statements.
- For this scenario, the audit opinion should a disclaimer. This could be written as shown below.
We were initially appointed auditors in February 2014 which was subsequent to the end of the Company's financial year. In consequence we were unable to carry out auditing procedures necessary to obtain adequate assurance regarding the quantities and condition of inventories, appearing in the balance sheet at $10 millions. There were no other satisfactory audit procedures that we could adopt to obtain sufficient evidence regarding the existence of inventories. Furthermore, there were no audit evidence to support the cost of property and capital. Accordingly, we have not been able to obtain sufficient appropriate audit evidence to provide a basis.
- This is an unqualified statement. The introductory paragraph should indicate the information shown below.
The financial statements of Hatless Company as of December 31, 2012, were audited by other auditors whose report dated March 15, 2013; express an unqualified opinion on the statements.
The opinion is then written as seen below.
In our opinion, the financial statements give a true and fair view of the financial transactions of the Corporation during the year ended 31 December 2013 and the financial position of the Corporation at 31 December 2013 and of the Corporation’s cash flows for the year then ended in accordance with the United States of America GAAP.
- The issue of the accounting policy (depreciation) was dealt with correctly and therefore would constitute to an unqualified opinion.
