Question

An audit team cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist. The CPA firm may still give an unmodified (unqualified) opinion on the client's income statement.A. True.B. False.

Answer 1

Answer: False

Explanation: In simple words, unqualified opinion refers to the judgement of an independent auditor stating that the statements presented by the company are free from any bias or mistake and are prepared in accordance with the generally accepted accounting principles.

Hence if the auditor is not satisfied about the accuracy then he cannot give unqualified opinion.