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ASA 705 - Modifications to the Opinion in the Independent Auditor's Report - October 2009
Types of Modified OpinionsTypes of Modified Opinions
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Types of Modified Opinions
- This Auditing Standard establishes three types of modified opinions, namely, a qualified opinion, an adverse opinion, and a disclaimer of opinion. The decision regarding which type of modified opinion is appropriate depends upon:
- The nature of the matter giving rise to the modification, that is, whether the financial report is materially misstated or, in the case of an inability to obtain sufficient appropriate audit evidence, may be materially misstated; and
- The auditor’s judgement about the pervasiveness of the effects or possible effects of the matter on the financial report. (Ref: Para. A1)