Illustrative wordings for a qualified opinion include which form?

Prepare for the CAS Exam 6 with detailed study materials. Use flashcards and multiple-choice questions, each with hints and explanations, to get exam-ready!

Multiple Choice

Illustrative wordings for a qualified opinion include which form?

When an opinion is qualified, the wording must clearly signal an exception to the overall opinion. The form should say that, except for the matter described, the financial statements are presented fairly. The option that uses a phrase like “In my opinion, with the qualification that it does not include the …, the amounts…” fits this pattern well because it explicitly marks an exception and ties it to the specific area of qualification. This communicates to readers that everything else is acceptable aside from the described issue. The other formulations don’t express a qualified opinion. A statement that the reserves satisfy laws reads more like a factual assertion about reserves rather than the auditor’s opinion on the financial statements. Saying the opinion is unconditional describes an unqualified opinion, not a qualification. A claim that the company has no reserves qualifying likewise isn’t an appropriate way to convey a qualification in the opinion—it’s describing reserves rather than the opinion about the statements.

When an opinion is qualified, the wording must clearly signal an exception to the overall opinion. The form should say that, except for the matter described, the financial statements are presented fairly. The option that uses a phrase like “In my opinion, with the qualification that it does not include the …, the amounts…” fits this pattern well because it explicitly marks an exception and ties it to the specific area of qualification. This communicates to readers that everything else is acceptable aside from the described issue.

The other formulations don’t express a qualified opinion. A statement that the reserves satisfy laws reads more like a factual assertion about reserves rather than the auditor’s opinion on the financial statements. Saying the opinion is unconditional describes an unqualified opinion, not a qualification. A claim that the company has no reserves qualifying likewise isn’t an appropriate way to convey a qualification in the opinion—it’s describing reserves rather than the opinion about the statements.

More practice questions