Question

What five circumstances are required for a standard unqualified report to be issued?

Answer 1

Following 5 condition is required to issue an unqualified report –

1. Completeness of financial statement- financial statement should include income statement, balance sheet, statement of retained earnings, Cash flow statement.
2. Compliance with GAAS – Three GASS should be followed
3. Audit evidence : Auditor should be able to get sufficient appropriate audit evidence to conclude that all three standard has been followed
4. Presentation as per GAAP –presentation of Financial statement should be as per GAAP
5. No changes required – there is no reason to believe that financial statement require any modification or additional details