Audit Opinions Flashcards
(5 cards)
1
Q
when is a qualified opinion issued
A
when there is a material but not pervasive misstatement or limitation of scope
2
Q
when is an adverse opinion issued
A
when FS are materially and pervasively misstated
3
Q
when is a disclaimer of opinion issued
A
when the auditor cannot obtain sufficient appropriate evidence and potential effects are pervasive
4
Q
what is an emphasis of matter paragraph
A
draws attention to a significant matter disclosed in the FS; does not modify the opinion
5
Q
define “pervasive” per ISA 705
A
a misstatement that affects FS as a whole or is fundamental to users understanding
