The consequences an auditor of giving an unqualified opinion when he knows that there are material inaccuracies in the financial statements is that he exposes himself to claims of negligence. In addition, he risks:
i) Having practising certificate withdrawn for professional misconduct
ii) Ruining the reputation of the firm
iii) Claims for damages against him by the company and other third parties
iv) Risk of criminal charges for issuing a misleading report.
Share through