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Hi Mike,
Could you please confirm if this is the correct layout of the audit report depending on certain circumstance.
Normal report if FS give a true and fair view and have no material misstatement anywhere.
Title, addressee,
Unmodified Opinion
Basis for Opinion
Auditors and Directors responsibility
Signature, date and location.If there is a small material misstatement that is not pervasive from lack of audit evidence or if FS get reinstated.
Title, addressee,
Qualified Opinion except for
Basis for Opinion – explanation
Emphasis of Matter paragraph or other matter paragraph (optional depending on scenario)
Auditors and Directors responsibility
Signature, date and location.If there is a pervasive material misstatement that from lack of audit evidence
Title, addressee,
Disclaimer Opinion ie:Can not give an opinion
Basis for Opinion – explanation
Emphasis of Matter paragraph or other matter paragraph (optional depending on scenario)
Auditors and Directors responsibility
Signature, date and location.If there is a pervasive material misstatement that from FS reinstated
Title, addressee,
Adverse Opinion ie: FS do not true and fair view
Basis for Opinion – explanation
Emphasis of Matter paragraph or other matter paragraph (optional depending on scenario)
Auditors and Directors responsibility
Signature, date and location.A KAM paragraph is only for listed companies and is included below the basis of opinion paragraph in any of the above.
If going concern is an issue then the material uncertainty related to going concern is just above the KAM and below the basis for opinion paragraph.
Then is you have an unmodified opinion what is the correct definition or meaning of this?
Thanks,
“A KAM paragraph is only for listed companies (Yes) and is included below the basis of opinion paragraph in any of the above.”
No, not if there’s a disclaimer. Otherwise, Yes
“If going concern is an issue then the material uncertainty related to going concern is just above the KAM and below the basis for opinion paragraph”
Yes
All others ok
OK?
Thanks Mike! Would you know what the definition of the unmodified unmodified opinion is? I am a bit confused by this
there has to be a paragraph for other information also if there is any inconsistency or misstatement of fact ,which would not affect the opinion ,but the auditors will address that in a seperate paragraph in the auditors report .
this is headed “other information ” and is positioned immediately after the BASIS OF OPNION section if there is material misstatement of other information..(according to the BPP TEXT BOOK..
please comment your views
What comment do you want?
Something like … “That’s at least 3 paragraphs that should come immediately after the basis of opinion paragraph”?
Yes.
So it’s down to the skill of the auditor to determine the sequence of these paragraphs
Adurich, why have you piggy-backed onto Seanog’s thread? You have enough experience to know how to start your own!
Seanog, here’s an explanation / definition:
Unmodified opinion is the opinion where auditor expresses an opinion that financial statements are presented, in all material respects, in accordance with applicable financial reporting framework
It’s the default category. Any alteration to this ‘clean’ opinion is either a qualification or it’s an adverse opinion or a disclaimer of opinion
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