AANeed some examples of Adverse & Disclaimer

From the BBP book: An adverse opinion is expressed when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements are both material and pervasive to the financial statements. Reason deemed pervasive - Misstatements are not confined to specific elements, accounts or items in the financial statements. Example - No depreciation has been provided on plant and equipment, a receivable balance consisting half of total receivables is irrecoverable and has not been provided and trade payables have been significantly understated. All misstatements are material and these balances are significant on the SOFP. Reason deemed pervasive - Misstatements are confined to specific elements, accounts or items in the financial statements and represent a substantial portion of the financial statements. Example - A house building company has included all the houses it has constructed in the year as non current assets rather than inventory. The value of these houses constitutes 90% of the total asset value on the SOFP. Reason deemed pervasive - Misstatements relate to disclosures which are fundamental to the users' understanding of the financial statements. Reason - There is a material uncertainty in respect of going concern which has not been adequately disclosed. The question you need to ask yourself is this: Am i significantly diverted from the real financial position of the company as a result of the misstatements? Disclaimers of opinion An opinion must be disclaimed when the auditor cannot obtain sufficient appropriate audit evidence on which to base the opinion and concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive. One example of when a disclaimer of opinion is used is in relation to going concern, when management is unwilling to make or extend its assessment. Another example might be where the auditor is unable to attend the inventory count and unable to request receivables confirmations, and there is no other realistic means of gathering evidence on these two areas. If these two areas form a significant element of the total assets value, a disclaimer may be appropriate.