When single-year financial statements are presented, an auditor ordinarily would express an unqualified opinion in an unmodified report if the
- Auditor is unable to obtain audited financial statements supporting the entity’s investment in a foreign affiliate.
- Entity declines to present a statement of cash flows with its balance sheet and related statements of income and retained earnings.
- Auditor wishes to emphasize an accounting matter affecting the comparability of the financial statements with those of the prior year.
- Prior year’s financial statements were audited by another CPA whose report, which expressed an unqualified opinion, is not presented.