Financial

During financial audit the auditors:

  • evaluate whether the financial statements contain material errors or misstatements;
  • evaluate whether the financial statement is prepared according to requirements of laws and regulations and accounting standards;
  • express an opinion on financial statements.

The State Audit Office can express following opinions:

  • Unqualified opinion — if the auditor concludes that the financial statements generally gives a true and fair view on financial position of the audited entity and of its financial performance results in the reporting year and is prepared in accordance with requirements of laws and regulations which are effective in the Republic of Latvia.

   In certain cases unqualified opinion can be supplemented with an emphasis of matter paragraph:

    • in order to emphasize significant matters related to the audited entity’s ability to continue as a going concern;
    • if a material uncertainty exists (not related to the concept of going concern), solution of which depends on future events    and which could impact the financial statement.
  • Qualified opinion — if the auditor concludes that he/she is unable to express an unqualified opinion or the impact of disagreements with the management of the audited entity or of audit scope limitations on financial statements is not so material and deep for the auditor to express an adverse opinion or declaimer of opinion.
  • Adverse opinion — if the misstatements revealed during the audit are both material and pervasive.

   Qualified opinion and adverse opinion is expresses also in case when the opinion on financial statements of previous            reporting period has been modified and the respective matter is still current and is material in the context of the financial        statements of the current reporting period.

  • Disclaimer of opinion — expressed in case when the possible impacts of limitations on the audit scope are so material, pervasive and influential that the auditor cannot gather sufficient and appropriate audit evidence and thus cannot express an opinion on the financial statements.