ISA 705 (Revised) — Modifications to the Opinion in the Independent Auditor’s Report
ISA 705 (Revised) is an international pronouncement addressing modified audit opinions when misstatement or insufficient evidence requires them. It addresses qualified and adverse opinions and disclaimers. The choice depends on whether the issue is a known material misstatement or insufficient evidence and whether the effect or possible effect is pervasive.
Worked example
A material but non-pervasive misstatement leads to consideration of a qualified opinion.
Common mistake
Distinguish a known material misstatement from a lack of evidence and assess pervasiveness before selecting the modified opinion.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |