1.

If the audited unit imposes restrictions and does not allow the bank to confirm its account with the bank, then the monetary funds cannot be confirmed, and it cannot be confirmed whether the audited unit conceals its liabilities to the bank. Excluded;

If the audited unit infringes the trademark rights of others, the judgment result cannot be determined, but the amount is significant. The winning and losing cases each account for 50%, which is a possible contingency. Winning the case will not generate income, and losing the case may To reduce profits, according to the principle of prudence, 50% of the loss should be recognized.

2.

The above matters will cause major doubts for the certified public accountant. If there is a material misstatement, such as concealing a huge liability, the loss caused by losing the lawsuit will have a decisive impact on the decision-making of the statement users.

3.

If the above amount only exceeds the materiality level, you may consider issuing a qualified audit report;

4.

If the amount far exceeds the materiality level, for example, the hidden liabilities exceed the net assets, or a contingent loss causes a shift from profit to loss, you may consider issuing an audit report with a negative opinion.

There are 5 types of audit opinions in financial statement audits, which are:

1. Standard unqualified opinion: indicates that the auditor believes that the financial statements prepared by the auditee have been Prepared in accordance with the provisions of applicable accounting standards and fairly reflecting in all material respects the financial position, operating results and cash flows of the auditee.

2. Unqualified opinion with emphasis of matter paragraph: It indicates that the auditor believes that the financial statements prepared by the auditee comply with the requirements of relevant accounting standards and fairly reflect the financial status of the auditee in all material aspects. Operating results and cash flows, but there are matters that need to be explained, such as major doubts about the ability to continue operating and major uncertainties, etc.

3. Qualified opinion: It indicates that the auditor believes that the financial statements as a whole are fair, but there are significant misstatements.

4. Adverse opinion: indicates that the auditor believes that the financial statements as a whole are unfair or have not been prepared in accordance with applicable accounting standards.

5. Unable to express an opinion: It means that the auditor's audit scope is limited, and its possible impact is significant and extensive, and the auditor cannot obtain sufficient audit evidence.