Form and Content of the Auditor’s ReportForm and Content of the Auditor’s Report When the Opinion is Modified

Form and Content of the Auditor’s Report When the Opinion is Modified

Auditor’s Opinion

1. When the auditor modifies the audit opinion, the auditor shall use the heading “Qualified Opinion,” “Adverse Opinion,” or “Disclaimer of Opinion,” as appropriate, for the Opinion section. (Ref: Para. A17–A19)

Qualified Opinion

1. When the auditor expresses a qualified opinion due to a material misstatement in the financial report, the auditor shall state that, in the auditor’s opinion, except for the effects of the matter(s) described in the Basis for Qualified Opinion section:
   1. When reporting in accordance with a fair presentation framework, the accompanying financial report presents fairly, in all material respects (or gives a true and fair view of) […] in accordance with [the applicable financial reporting framework]; or
   2. When reporting in accordance with a compliance framework, the accompanying financial report has been prepared, in all material respects, in accordance with [the applicable financial reporting framework].

When the modification arises from an inability to obtain sufficient appropriate audit evidence, the auditor shall use the corresponding phrase “except for the possible effects of the matter(s) ...” for the modified opinion. (Ref: Para. A20)

Adverse Opinion

1. When the auditor expresses an adverse opinion, the auditor shall state that, in the auditor’s opinion, because of the significance of the matter(s) described in the Basis for Adverse Opinion section:
   1. When reporting in accordance with a fair presentation framework, the accompanying financial report does not present fairly (or give a true and fair view of) […] in accordance with [the applicable financial reporting framework]; or
   2. When reporting in accordance with a compliance framework, the accompanying financial report has not been prepared, in all material respects, in accordance with [the applicable financial reporting framework].

Disclaimer of Opinion

1. When the auditor disclaims an opinion due to an inability to obtain sufficient appropriate audit evidence, the auditor shall:
   1. State that the auditor does not express an opinion on the accompanying financial report;
   2. State that, because of the significance of the matter(s) described in the Basis for Disclaimer of Opinion section, the auditor has not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial report; and
   3. Amend the statement required by paragraph 24(b) of ASA 700, which indicates that the financial report has been audited, to state that the auditor was engaged to audit the financial report.