The fourth standard of reporting requires the auditor’s report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. The objective of the fourth standard is to prevent
- An auditor from expressing different opinions on each of the basic financial statements.
- Restrictions on the scope of the audit, whether imposed by the client or by the inability to obtain evidence.
- Misinterpretations regarding the degree of responsibility the auditor is assuming.
- An auditor from reporting on one basic financial statement and not the others.