Question

Independent auditors must provide dual opinions. What are these two opinions and what is the difference in them?

Answer 1

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Independent auditors must provide dual opinions on the financial statements i.e. Assurance opinion and audit opinion. An opinion on the effectiveness of the internal control system is an assurance opinion while the fairness of the amounts that are reported in the financial statement is an audit opinion. An assurance opinion is usually followed by an audit opinion i.e. the auditor first tests the internal control systems, designs the audit tests as per the effectiveness of the internal controls and then forms an audit report on the fairness on the amounts presented in the financial statements.