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hello gromit
i am kind of struggling to actually describe the audit report implications of scenario based questions. i understand the concept but have some confusions. please see me questions below:
1) Qualified audit report is the same as modified. do we have to use both these terms or at least one of them would be sufficient?
2) lets suppose if there is a materiel misstatement (due to depreciation) and management refuses to amend or provide disclosure then will it be ok if i describe this like
“The auditor should issue a qualified/modified opinion with an except for para meaning that except for depreciation misstatement the rest of financial statement show true and fair view”
have i correctly described this or do i need to use more technical language for this? please let me know
thanks
The audit report is not the same as the audit opinion, which is only one paragraph in the report.
An audit opinion can be unmodified or can be moddified to become:
qualified (‘except for’)
adverse
disclaimer.The audit report can be ‘modified’ without the opinion being modified by including an emphasis if matter or other matters paragraph.
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