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The purchasing department buys goods worth $20000 in the market for $50000 from a supplier due to the negligence. If external auditor finds this. What opinion would he give in his audit report?
It depends if the $30,000 difference is not material there would certainly be no effect. If the $30,000 was material, and fraud was not involved, there would still be no effect. Companies make all sorts of errors, often because of incompetence, but that will not cause a misstatement provided the matter is recorded properly in the FS. For example, a company could quote too little for a job so that a loss was made. That would not create a qualified report
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