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An auditor who conducts an audit of the financial statement for either financial year or half...

An auditor who conducts an audit of the financial statement for either financial year or half year, must form an opinion under s. 307

Required:
Explain any three opinions the auditor will form based on s. 307.

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Answer #1

Types of opinions formed by an auditor

1. Unqualified opinion - this type of opinion is isssued by an auditor when he obtained sufficient and appropriate audit evidence to have reasonable assurance as to financial statements are free from error and material mis-statements.

2. Qualified opinion - this type of opinion is issued when the auditor obtained mis-statements which are material but not pervasive and except for these mis-statements financial statements represent true and fair view.

Adverse opinion - this type of opinion is issued by an auditor when he identifies mis-statements that are material and pervasive which represent that due to these material mis-statements and errors finanacial statements do not represent true and fair view.

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