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Hi would you be able to explain what “except for” means?
The basis of opinion paragraph would need to include a paragraph explaining the material misstatement in relation to the
provision of depreciation on land and the effect on the financial statements. The opinion paragraph would be qualified ‘except
for’.Thank You
It means that the FS are true and fair except for an isolated but material problem.
EG “…except that some inventory has been valued at cost rather than being written down to NRV… the FS show a true and fair view……”.
The Basis of Qualified OPinion paragraph would explain the problem in full.
It’s like going from:
My wife loves me [All’s fine]
to
Except that I sometimes leave unwashed coffee cups in the sink, my wife loves me [Isolated problem, but fundamentally things are OK – qualified]
to
My wife does not love me [Big problem! – a disclaimer of love]
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