f8 audit procedure vs substantive procedure

Audit procedure include:
1) Risk assessment Procedure [related to inherent risk and control risk (design)]
2) Test of controls [related to control risk (operations)]
3) Substantive procedure (related to detection risk)

All the above three procedure can be performed through
1) Observation
2) Inspection
3) Re performance & Re calculation
4) Analytical Procedure
5) Confirmation
6) Inquiry

AOA and Hi,

Dear,

I have a little bit confusion, please help me in understanding it.

There are two types of reports

1)Modified
2)Unmodified

Modified

If the amount is material but not pervasive, would the accounts be qualified? or simply stating except for certain item, the FS show true and fair view would be enough with out the accounts being qualified?

Actually i couldn’t understand these lines ” The other reason for qualification is where the auditor has been unable to obtain sufficient appropriate audit evidence, so for a matter where there is missing information is relatively small but material then the auditor will qualify the accounts using an except for paragraph. For example, except that we could not verify the adequacy of the bad debt provision, the accounts show true and fair view.”

I guess there was a misprinting in OT notes as there it should have been written like “where there is missing information is relatively small but material then the auditor will NOT qualify the accounts using a except for paragraph”

I simply want to know that is it like no matter if the amount if material but unless or until it is not pervasive the accounts are not going to be qualified instead an except for statement will be used.

Or this is like, it is the qualification but not up to that extent that it renders the whole FS to be useless, but whenever a point comes that is material the accounts deemed to be qualified. The auditors will not give an adverse or disclaimer of opinion but they will simply use “except for” for this kind of qualification.

Please help me out understanding this confusion as i am doing self study … any help from anyone will be highly appreciated please.