The auditor should state the reasons for his reservations in audit report and should try to quantify...........

Auditing Audit and auditor's report

The auditor should state the reasons for his reservations in audit report and should try to quantify the effect on them. This should be done in case he has expressed _ i) A qualified opinion ii) an unqualified opinion with emphasis of matter paragraph iii) An adverse opinion IV) a disclaimer of opinion

i) only

i) and (iv) only

i), iii) and (iv) only

All of the above

छोटे Courses बड़े Results

Master Audit and auditor's report

Prepare through Micro-courses

Try Now

Explanation:

Let’s break it down:

- When the auditor expresses a qualified opinion, adverse opinion, or a disclaimer of opinion, they have some kind of reservation about the financial statements.

- In these cases (i, iii, iv), the auditor must state the reasons for those reservations in the audit report. If possible, they should also quantify their effect.

- For an unqualified opinion with an emphasis of matter paragraph (ii), the auditor draws attention to something, but *isn’t expressing a reservation*. So, they don’t need to “quantify” anything negative—just highlight the matter.

Option 3 (i, iii, and iv only) is correct.

So here’s the answer in bold:

Option:3, i), iii) and (iv) only