Audit Opinion and Auditor’s Report

Edgar Löw () and Reinhard Heyd ()
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Edgar Löw: Frankfurt School of Finance & Management

Chapter Chapter 9 in The Audit Failures of the Wirecard Scandal, 2024, pp 139-144 from Springer

Abstract: Abstract At the end of an audit, the auditor is obliged to form an opinion, which is expressed in an auditor's report. The audit opinion can be issued without any objections, as was the case with Wirecard by Ernst & Young. However, it can also be qualified or refused altogether. Based on our findings, we explain that there were sufficient reasons for refusing the audit opinion. If the auditor's report had been refused at an early stage, which—as we demonstrate—would have been the inevitable consequence if the audit had been carried out properly, the negative financial effects for shareholders and other investors would have been significantly less and the reputation of Germany as a financial market would have been less damaged. For the reputation of the auditing profession, the inadequate audit procedures were a catastrophe that was clearly avoidable.

Keywords: Audit assurance; Audit opinion; Auditing Standards; Auditor’s report; Breach; Error; Financial statement; Fraud; Internal control; Misstatement; Reasonable assurance; Risk assessment; Risk evidence; Risk-oriented audit; Violation; Working paper (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-59854-8_9

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DOI: 10.1007/978-3-031-59854-8_9

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