Audit Opinion Decision Simulator
Follow the auditor's decision-making process. Answer the questions based on your audit findings to determine the correct type of opinion to issue.
Step 1: Audit Evidence
Was sufficient appropriate audit evidence obtained to conclude that the financial statements as a whole are free from material misstatement?
Step 2: Financial Statement Issues
Based on the evidence, are the financial statements as a whole materially misstated?
Step 3: Pervasiveness of Misstatement
Is the material misstatement pervasive to the financial statements?
Pervasive means: Not confined to specific items, OR represents a substantial proportion of the statements, OR is fundamental to users' understanding.
Step 4: Pervasiveness of Scope Limitation
Could the possible effects of undetected misstatements (due to the lack of evidence) be both material and pervasive?
Pervasive means: The potential impact is not confined to specific items, OR could represent a substantial proportion of the statements, OR is fundamental to users' understanding.
