[Iheanacho]

Thanks Secondstar,
I really appreciate your prompt response. I know it should be part of the F3 lectures on not-for-profit making organization. Is just that I have not opened any F3 material in a very long time, so I’m not sure of the exact one on the video list as the title (not-for-profit)is not mentioned on the lecture list. Please I would be very grateful if you could narrow down the exact topic to view.

Thanks so much.

[Iheanacho]

Meaning of pervasive has been well explained above by our Tutor, Ken Garret.

This is just to add my own contribution which i think could be helpful as well.

Where the error is more than 5% but less than 20% , it is ‘material but not pervasive’, this results in a modified opinion :- Qualified Opinion, Except for………..,the FS gives a true and fair view of the entity. ( i.e in a case of material misstatement or limitation of scope)

But when the error is greater than 20% it is ‘material and pervasive’ resulting in a modified opinion. Here opinion is expressed depending on reason for modification: i.e:-
For material misstatement =Adverse Opinion, accounts do not give a true and fair view of entity’s affairs.
For Limitation of scope(auditor unable to obtain sufficient appropriate evidence)= Disclaimer of opinion. i.e unable to give opinion.

Regards,
Achor.

[Author]

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