Explore what impact the different auditor’s opinion will have on the audited organization, its employees and...

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Accounting

Explore what impact the different auditor’s opinion will have onthe audited organization, its employees and its stakeholders. Doyou feel it is absolutely necessary to audit an organization everyyear if they have continuously been issued a clean audit opinion?Why or why not?

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Auditors opinion has a significant impact on the audited organization its employees and its stakeholders It helps in the decisionmaking process of the employeestrade union and the stakeholders with respect to the audited organization Also audited organization has its reputation at stake Here is how different types of opinion impact the audited organization and their stakeholders 1 CleanUnmodified opinion This opinion is the best opinion which every organization hopes for An unmodifiedunqualified opinion is passed when the financial statements of the organization from material misstatements It means that the to the best of knowledge of auditor and as per the facts represented by the management to the auditor auditor expresses an opinion that the financial position and statement of affairs as depicted by the company in its financial statements are true and fair as per the auditor This has a very positive impact on the image and reputation of the audited organization It will also have a positive impact for the shareholders as a clean opinion might lead to an See Answer

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