In a piecemeal opinion situation, when can an auditor express an unmodified opinion on a specific element?

In a piecemeal opinion situation, an auditor can express an unmodified opinion on a specific element when that specific element has no accompanying adverse opinion. An unmodified opinion indicates that the specific element presents a true and fair view of that portion of the financial statements, which is contingent upon the element being free from significant issues that would lead to an adverse opinion.

When an auditor expresses an opinion on one portion of the financial statements, they must ensure that the other portions of the financial statements do not carry adverse findings that would undermine the reliability of the specific element being reported. Since the objective of the auditor is to provide clarity and not to mislead the users of the financial statements, it is crucial that the element stands independently in its representation without the hindrance of adverse findings elsewhere.

In contrast, if the element is part of a larger set of financial statements that includes adverse opinions or deficiencies, the reliability of that specific element may be questioned, thus preventing the auditor from issuing an unmodified opinion on it. This decision-making ensures that users can have confidence in the financial reports provided.