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

Which of the following items must be included in an audit report expressing an unmodified opinion?

1. An audit involves performing procedures to obtain audit evidence about amounts and disclosures.

2. The procedures depend on management's approval, including fraud assessments.

3. The audit was conducted in accordance with generally accepted accounting principles.

4. The audit evidence is believed to be sufficient for reviewing the financial statements.

The correct answer is: An audit involves performing procedures to obtain audit evidence about amounts and disclosures.

An audit report expressing an unmodified opinion must include a description of the procedures performed to obtain audit evidence regarding the amounts and disclosures in the financial statements. This is crucial because it reassures users of the financial statements that a thorough and systematic approach was taken to gather evidence, reflecting the auditor's evaluation of the validity and accuracy of the information presented. By stating that an audit involves performing procedures to obtain audit evidence, the report emphasizes the auditor's responsibility in examining the financial records and demonstrates adherence to auditing standards, which enhances the credibility of the audit. This inclusion delineates the difference between an unmodified opinion and other types of opinions, emphasizing a thorough and professional audit process deemed necessary for trust in the financial report. The other items listed fail to encapsulate this critical aspect of the audit process and may either misrepresent the auditing standards or suggest lesser responsibilities that do not align with an audit conducted under an unmodified opinion. Thus, the correct choice effectively showcases an essential component of the audit report.