ACCA Advanced Audit and Assurance (AAA) Practice Exam

Which audit opinion is expressed when sufficient appropriate evidence is obtained but indicates significant issues?

1. Qualified opinion

2. Disclaimer of opinion

3. Adverse opinion

4. Unqualified opinion

The correct answer is: Qualified opinion

The option that reflects the audit opinion expressed when sufficient appropriate evidence is obtained but indicates significant issues is the qualified opinion. A qualified opinion is issued when the auditor concludes that the financial statements are generally presented fairly, but there are specific areas of concern or limitations that are significant enough to affect the overall presentation. In this scenario, the auditor has obtained adequate evidence but has identified particular issues, such as a limitation in scope or a disagreement with management regarding an accounting treatment. This leads to the auditor expressing a qualified opinion, highlighting both the overall fairness of the financial statements and the specific problems identified. This is distinct from an adverse opinion, which would suggest pervasive issues that lead to a conclusion that the financial statements do not fairly present the entity's financial position at all. A disclaimer of opinion indicates that the auditor cannot form an opinion due to significant uncertainties or limitations in the audit process. An unqualified opinion, on the other hand, is the best possible outcome, indicating that there are no significant issues and that the financial statements provide a true and fair view.