By Joshua Corcuera
In social media platforms, specifically Facebook and Twitter, false information concerning fundamental concepts in auditing theory are being spread. As a third-year accountancy student, who coincidentally is currently taking three units each for auditing theory and auditing problems, I am urged to share the knowledge I gained in the field I entered.
To give some context, a certain person in Tiktok who is now permanently banned from the platform attacked Vice President (VP) Leni Robredo for obtaining an unqualified audit opinion for three straight years from the Commission on Audit (COA). This person claimed that an unqualified opinion means that “auditors have obtained all necessary audit evidence that they need to support their opinion.” Likewise, the subject said this about the VP: “either nakapagpakita ng dokumento o napatunayan din na wala silang dokumento tungkol sa iba’t ibang aspeto ng financial statements.”
Basically, the subject is telling that an unqualified opinion is a bad thing. The person’s claims are false—so incorrect that second-year accountancy students studying in advance would laugh at him. I am not kidding because I personally know accountancy sophomores who can answer quizzers in auditing theory (also known as auditing and assurance: principles).
From his erroneous narrative, I can only say this: make sure you know what you are talking about when you initiate a heated discussion. Otherwise, you will look preposterous. As a maxim goes, maingay ang latang walang laman.
According to the Philippine Standards on Auditing (PSA), an unqualified opinion is expressed “when the auditor arrives at the conclusion that the financial statements are fairly presented, in all material respects, in accordance with the identified financial reporting framework.”
According to Salosagcol, Tiu, and Hermosilla (2021), an unqualified opinion is issued if, and only if, “the auditor is satisfied that (1) the financial statements have been prepared in accordance with the applicable financial reporting framework such as PFRS; and (2) the auditor was able to conduct the audit in accordance with PSA.”
Fair presentation means reasonable, not absolute, assurance. The assurance provided by auditors are only reasonable due to the inherent limitations of an audit such as the use of selective testing, use of judgment, nature of evidence as something persuasive rather than conclusive, and so on.
The point here is that an unqualified opinion is considered a generally clean report—basically a good thing. Moreover, an unqualified opinion does not automatically mean one is perfect because, as mentioned earlier, assurance provided by an audit is reasonable, not absolute. And anyway, we are all humans—but of course good things must outweigh bad things. Obtaining an unqualified opinion is one way to show that truth, transparency, and fairness are values being emphasized.
Regardless of one’s political views, it cannot be denied that those who received an unqualified opinion are subjects with clean hands and are generally transparent with their transactions. This applies not only to government offices being audited by COA, but also to private corporations being audited by accounting firms.
Last October 23, I wrote an article entitled “Be careful of what you see” and now, dear reader, you can understand the point of why it is imperative to be critical of the things found in society—from social media to the buzz in the streets.
Joshua Corcuera is a third year accountancy student at Adamson University where he is also an editor of the university’s student publication. He recently placed first runner-up in an accounting quiz bee at the same institution.
