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Hi Mike hope you well,
Just a quick question, I always thought that if the auditor is unable to obtain sufficient evidence from the management, a disclaimer of opinion would be given.
However during my revision, I have noticed that if the misstatements are material but not pervasive and the Auditor cannot obtain specific audit evidence then a qualified opinion with except for is appropriate.
If the misstatements are pervasive and there is lack of evidence from the management then the opinion should be disclaimer of opinion.
Will they tell us if the matter is pervasive?
Thanks Mike
No, the examiner is unlikely to say “You may treat this as pervasive” It will be up to you to cover the bases so, “On the assumption that this is material but not pervasive, then ……. However, if in fact the inability to obtain sufficient appropriate audit evidence is considered to be so material that the financial statements are considered to be meaningless, then a disclaimer …..”
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