ABSTRACT
Abstract. This paper constitutes a historical study of the roots of the decision by Arthur Andersen & Co, in 1946 to adopt a two-part auditor’s opinion for all of its engagements, and of its eventual decision in 1962 to return to the standard form of the auditor’s report. The essence of the two-part opinion was to decouple the auditor’s opinion on fairness of presentation from the opinion on conformity with generally accepted accounting principles. The paper also treats the factors that prompted the Canadian Institute of Chartered Accountants to adopt a two-part opinion, and the reasons why it opted to return to the singleopinion format in 1976.
