- This topic has 1 reply, 2 voices, and was last updated 4 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Practise Questions Chapter 5 Question 4
Kindly explain the answer; doesn’t an unmodified audit opinion imply no frauds occurred during the financial period?
Thank you Maureen for posting your question here!
Short answer NO
See page 30 of the notes:
“3.10 Auditor’s responsibilities
The auditors’ responsibilities are to obtain REASONABLE ASSURANCE about whether the financial statements as a whole are free from MATERIAL misstatement, whether due to fraud or error, and to issue an auditor’s report that includes their opinion.”
As the notes go on to say, reasonable assurance is not a guarantee and the financial statements can – and will – include immaterial misstatements (whether due to error or fraud) when the audit opinion is unmodified. You should find this reinforced in your later studies.