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Audit Opinions: Unmodified/Modified – ACCA Audit and Assurance (AA)

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  2. Hi there,

    I always thought that when the item is material we have a modified opinion.
    However, when I was doing some exercises I stumbled upon the following terminology which got me pretty confused “non-adjusting material events” and it was regarding matters after the BS date.
    Now how do I know when the question regarding audit reporting comes – do we modify the report or not when there are material issues after BS date?

    Thank you in advance for the clarification

  4. Hi Sir,
    Thank you so much for this great lectures. I have a question about going concern issues.
    If directors have prepared the accounts on break-up basis do we still include material uncertainty paragraph in the auditor’s report or we only include EoM paragraph?

    Thank you

  9. I still need some clarification please regarding Going Concern.

    I don’t understand why there is a separate paragraph for ‘Material Uncertainty relating to Going Concern’ but then it also has to be disclosed in the ‘Emphasis of Matter Paragraph’

    Also, how can Material Uncertainty relating to Going Concern not affect the auditor’s opinion if not adequately disclosed which is what is shown on the diagram on the first page of the lecture notes, and described in the lecture itself.

    Many thanks for your help in advance.

    • Now there is a special paragraph added after the opinion paragraph if there is material uncertainty about going concern. It operates like and EoM, but has a different title.

      If there is a need for and EoM as well (for example like above when there is a law case) there would be two paragraphs: EoM and material uncertainty about goving concern

  11. Respected sir,
    I have Following Question Will you please guideline Me
    1-Emphasis of Matter Paragraph will be included before Opinion paragraph for better understanding of user Entity if Report is Qualified is it ”OK”
    2-Emphasis of Matter Paragraph will reached Always Before Opinion Paragraph ???
    3- Other Matter Paragraph will always reached after Opinion paragraph ? ? ?

    Regards:

    Adil Siddqiui

  13. Hello Sirs, Thank you so much for your lecture.
    Kindly help to confirm whether my understanding is right or not!

    Unqualified report is when the financial statement give a true and fair view of FS in all material respect without any emphasis of matter paragraphs

    when the audit report has a emphasis of matter paragraphs –>it should be a unqualified opinion, not unqualified report, is it?

    Thank you!

  14. Hello sir, Thanks for this great lecture
    I have 2 questions to ask. 1). On what basis do we actually conclude that the matter being material is PERVASIVE ? therefore to issue a modified report with adverse /disclaimer opinion?

    2). When the directors are unable to assess the going concern of the business (for perfectly innocent reasons) what course of action would the auditor take? can he help them out do it ? or simply give an adverse opinion? .

    I would like you to plz shed some light on these questions. My apologies if i am not supposed to use this forum to ask questions

  16. I have one issue that needs an explanation. When we have a Qualified Opinion Except for the material misstatement is an isolated effect we can pin point the exact area.

    But when we have Adverse Opinion we can also pin point the the misstatement such as the bad debt provision that was not provided for, the 2 mil that would not be recoverable.

    My question is if we can pin point the error, the size or amount of the error that makes us use Except for or Adverse Opinion. Please clarify. Thanks Much.

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