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Hi,
When a modified/qualified opinion is issued due to material misstatement, the Open Tuition study text, and indeed the current Kaplan study text, say a ‘qualified opinion except for’ is used. And then a basis for paragraph.
However in the current Kaplan exam kit. Page 432 on Answer 22 says “it is concerning that there are still candidates using outdated terminology. Stating a ‘modified except for’ opinion will not gain credit”.
This seems to be a contradiction? Can we use Except for in the exam or not?
Thank you
The correct wording for the qualified opinion is:
“In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion …”
Followed by the “Basis for Qualified Opinion” paragraph.I believe the point is that “modified” does not mean “qualified” – see in our notes the very concise summary on audit opinions. Modified means any opinion other than unmodified – i.e. qualified, adverse or disclaimer.
So there is no such thing as “modified, except for”, I believe the examining team would credit “qualified, except for”.
Is that clearer?
Thank you for that Kim. I could not get my head round it at all until you cleared that up.
It makes sense now – the opinion would be modified, however you wouldn’t use the word modified, as it would be qualified, adverse or disclaimer.
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