What does auditor's opinion mean on the CPA exam?
Auditor's opinion. The conclusion the audit exists to produce. Its wording is prescribed, so which words appear tells a reader exactly what was concluded.
Defined against AU-C 700.
Which CPA exam sections use auditor's opinion?
Auditor's opinion appears in the ISC section of the CPA exam.
Other terms defined against AU-C 700
- auditor's report: The document carrying the opinion, with its sections in a fixed order.
- present fairly: The overall judgment behind an opinion: the statements as a whole give a true picture within the applicable framework, beyond mere technical compliance with each rule.
- unqualified opinion: The clean opinion: the statements are presented fairly in all material respects.
Related terms
- adverse opinion: The opinion given when misstatements are both material and pervasive, so the statements are not fair at all.
- qualified opinion: The opinion given when a misstatement is material but not pervasive, or when evidence the auditor could not obtain would have been.
- disclaimer of opinion: The auditor states that no opinion is expressed, because they could not get evidence and the possible effect is pervasive.
- audit sampling: Selecting and evaluating less than 100% of a population of audit relevance so the sample is expected to be representative, giving a reasonable basis for conclusions about the whole population.