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From what I understand an adverse opinion is where most of the balances in the FS are misstated. But what if only one balance is misstated but the effect of that on the profit is very high, say 60%? Should that not mean an adverse opinion?
Thank you.No it’s “except”. Pervasive means FS are affected as a whole not that one misstatement is “very material”.
So its possible to have a situation where one misstatement causes profit to be misstated by 80% but gets a qualified opinion, and another where there’s multiple misstatements but they only cause profit to be misstated by 30%, but that gets an adverse opinion?
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