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ASA 705 - Modifications to the Opinion in the Independent Auditor's Report - December 2015
Types of Modified Opinions (Ref: Para. 2Types of Modified Opinions (Ref: Para. 2)
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Types of Modified Opinions (Ref: Para. 2)
- The table below illustrates how the auditor’s judgement about the nature of the matter giving rise to the modification, and the pervasiveness of its effects or possible effects on the financial report, affects the type of opinion to be expressed.
<table cellspacing="0" cellpadding="0" style="width:441.75pt; margin-left:32.4pt; border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr><td rowspan="2" style="width:101.7pt; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:bottom"><p style="margin-left:3.05pt; margin-bottom:6pt; text-align:center"><span>Nature of Matter Giving Rise to the Modification</span></p></td><td colspan="2" style="width:317.7pt; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:6pt; text-align:center"><span>Auditor’s Judgement about the Pervasiveness of the Effects or Possible Effects on the Financial Report</span></p></td></tr><tr><td style="width:151.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:6pt; text-align:center"><span>Material but Not Pervasive</span></p></td><td style="width:155.7pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-bottom:6pt; text-align:center"><span>Material and Pervasive</span></p></td></tr><tr><td style="width:101.7pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-left:3.05pt; margin-bottom:6pt; text-align:center"><span>The financial report is materially misstated</span></p></td><td style="width:151.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:6pt; text-align:center"><span>Qualified opinion</span></p></td><td style="width:155.7pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:6pt; text-align:center"><span>Adverse opinion</span></p></td></tr><tr style="height:38.65pt"><td style="width:101.7pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="margin-top:3pt; margin-left:3.05pt; margin-bottom:6pt; text-align:center"><span>Inability to obtain sufficient appropriate audit evidence</span></p></td><td style="width:151.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:6pt; text-align:center"><span>Qualified opinion</span></p></td><td style="width:155.7pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:middle"><p style="margin-top:3pt; margin-bottom:6pt; text-align:center"><span>Disclaimer of opinion</span></p></td></tr></tbody></table>