Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

What factor most directly affects the audit opinion issued by an auditor?

1. The fiscal year-end of the entity

2. The adequacy of audit evidence obtained

3. The size of the client organization

4. The experience level of the auditor

The correct answer is: The adequacy of audit evidence obtained

The adequacy of audit evidence obtained is the factor that most directly affects the audit opinion issued by an auditor. This evidence forms the foundation upon which the auditor assesses whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. When auditors gather evidence, they conduct various procedures to test the accuracy and completeness of the financial information. This can include examining documents, making inquiries, observing processes, and performing analytical procedures. The quality, relevance, and sufficiency of this evidence are crucial because they determine the level of confidence the auditor has in the conclusions drawn about the financial statements. If the evidence is deemed sufficient and appropriate, the auditor is more likely to issue an unmodified opinion, indicating that the financial statements give a true and fair view. Conversely, if the evidence is inadequate or unreliable, it could lead to a qualified, adverse, or disclaimer opinion, reflecting the auditor's inability to provide assurance on the financial statements. The other factors, such as the fiscal year-end of the entity, the size of the client organization, and the experience level of the auditor, can influence the audit process and the challenges encountered but do not directly determine the opinion itself. The opinion is ultimately rooted in the strength and adequ