Reporting

Question 1

(a) Explain and distinguish between the following three types of modified auditor’s opinions:
• Qualified opinion

Answer 1

Qualified
Expressed when there is a misstatement or the auditor is unable to obtain sufficient appropriate audit evidence and the mistatement is/could be material but NOT pervasive. Expressed as “except for…the FSs give a true and fair view”

Question 2

(a) Explain and distinguish between the following three types of modified auditor’s opinions:
• Adverse opinion

Answer 2

Expressed when misstatements are material and pervasive.

“the FSs do not give a true and fair view”

Question 3

(a) Explain and distinguish between the following three types of modified auditor’s opinions:
• Disclaimer of opinion

Answer 3

Made when the auditor is unable to obtain sufficient appropriate evidence and the possible effects of undetected misstatements, if any, are material AND pervasive. Also expressed when, in rare circumstances, there are multiple uncertainties.

“We do not express an opinion on the FSs”