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ASA 705 - Modifications to the Opinion in the Independent Auditor's Report - December 2015
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Definitions
- For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
- Pervasive – A term used, in the context of misstatements, to describe the effects on the financial report of misstatements or the possible effects on the financial report of misstatements, if any, that are undetected due to an inability to obtain sufficient appropriate audit evidence. Pervasive effects on the financial report are those that, in the auditor’s judgement:
- Are not confined to specific elements, accounts or items of the financial report;
- If so confined, represent or could represent a substantial proportion of the financial report; or
- In relation to disclosures, are fundamental to users’ understanding of the financial report.
- Modified opinion – A qualified opinion, an adverse opinion or a disclaimer of opinion on the financial report.
- Pervasive – A term used, in the context of misstatements, to describe the effects on the financial report of misstatements or the possible effects on the financial report of misstatements, if any, that are undetected due to an inability to obtain sufficient appropriate audit evidence. Pervasive effects on the financial report are those that, in the auditor’s judgement: