CFA Level I · CFA Level I Exam · Introduction to Financial Statement Analysis
An auditor concludes that a company's financial statements are presented fairly in all material respects in accordance with IFRS. The type of audit opinion most likely issued is:
The auditor most likely issues an unqualified opinion. This is the clean opinion stating that the financial statements are fairly presented in all material respects under IFRS. Qualified opinions flag specific material departures, and adverse opinions indicate pervasive material misstatement.
- Aa qualified opinion.
- Ban unqualified opinion.Correct
- Can adverse opinion.
Explanation
An unqualified (clean) opinion states that the statements are fairly presented in all material respects under the applicable framework. A qualified opinion applies to specific material departures, and an adverse opinion says the statements are materially misstated and pervasively not fairly presented.
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