Audit and Assurance Practice Exam

Which of the following is NOT typically emphasized when issuing an unqualified opinion?

1. An inability to gather sufficient appropriate evidence

2. The lack of material misstatements

3. Compliance with applicable financial reporting frameworks

4. A clear expression of the auditor's opinion

The correct answer is: An inability to gather sufficient appropriate evidence

An unqualified opinion is issued when the auditor concludes that the financial statements present a true and fair view of the entity's financial position, without any identified material misstatements. In this context, emphasis is placed on the lack of material misstatements, compliance with applicable financial reporting frameworks, and a clear expression of the auditor's opinion. An inability to gather sufficient appropriate evidence is not typical when issuing an unqualified opinion. If an auditor encounters such an inability, it might lead to a disclaimer of opinion or a qualified opinion instead of an unqualified one. This is because the credibility of the audit relies heavily on the collection of sufficient and appropriate evidence to support the overall conclusions about the financial statements. Hence, stating an inability to gather evidence goes against the very essence of an unqualified opinion, which is rooted in a complete and thorough audit process that informs the positive findings reflected in the opinion.