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Hi Sir,
I am getting confused on the proper order if the audit report. Can you kindly clarify if the below is the correct order?
After basis of opinion’;
Emphasis of mater;
Material Uncertainty relating to Going Concern;
KAM;
other matters?Please download OpenTuition’s AAA notes. This is a searchable pdf so you can quickly find any of these terms and in Chapter 23 section 3 you will find the elements of an auditor’s report listed in the usual order.
Thanks 🙂
Moreover, if there is a situation where you have 2 material misstatements, one due to insufficient audit evidence and one due to an uncorrected material adjustment.
If they where both pervasive, how should the opinion be headed, disclaimer of opinion or adverse opinion?
I am assuming, if they are not pervasive but material, the heading would just be qualified opinion except for and both error will be included in there.Regards,
SamThe two grounds for qualification are “mutually exclusive” – for the auditor to conclude that there is material misstatement there must be SUFFICIENT evidence. So if a lack of evidence is pervasive there cannot be sufficient evidence to form an adverse opinion.
It is certainly possible (and it happens in the real world) that there could be more than one material issue and, as long as they clearly concern different account balances/transactions/events – one “except for” could be material misstatement and another arise from insufficient evidence.
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