Page 174 - CA Final PARAM Digital Book.

• When reporting in accordance with a compliance framework, the accompanying financial
statements have been prepared, in all material respects, in accordance with [the applicable
financial reporting framework].
• When the modification arises from an inability to obtain sufficient appropriate audit
evidence, the auditor shall use the corresponding phrase “except for the possible effects of
the matter(s) ...” for the modified opinion.

(b) Special consideration needed for expressing Adverse Opinion: When the auditor expresses
an adverse opinion, the auditor shall state that, in the auditor’s opinion, because of the significance
of the matter(s) described in the Basis for Adverse.
Opinion section:
• When reporting in accordance with a fair presentation framework, the accompanying
financial statements do not present fairly (or give a true and fair view of) […] in accordance
with [the applicable financial reporting framework]; or
• When reporting in accordance with a compliance framework, the accompanying financial
statements have not been prepared, in all material respects, in accordance with [the
applicable financial reporting framework].

(c) Special consideration is required for expressing Disclaimer of Opinion: When the auditor
disclaims an opinion due to an inability to obtain sufficient appropriate audit evidence, the auditor
shall:
• State that the auditor does not express an opinion on the accompanying financial
statements.
• State that, because of the significance of the matter(s) described in the Basis for Disclaimer
of Opinion section, the auditor has not been able to obtain sufficient appropriate audit
evidence to provide a basis for an audit opinion on the financial statements; and
• Amend the statement required in SA 700 (Revised), which indicates that the financial
statements have been audited, to state that the auditor was engaged to audit the financial
statements. Unless required by law or regulation, when the auditor disclaims an opinion on
the financial statements, the auditor’s report shall not include a Key Audit Matters section in
accordance with SA 701.

QNO Impact of Disclaimer on Auditor Responsibility Old Course – (N22R)
113.015 TITANIUM CNO-- SA705.160
How should auditor give description of auditor’s responsibilities for the audit of the financial statements
when the auditor disclaims an opinion on the financial statements?
Answer When the auditor disclaims an opinion on the financial statements due to a n inability to obtain sufficient
appropriate audit evidence, the auditor shall amend the description of the auditor’s responsibilities required
by SA 700, “Forming an Opinion and Reporting on Financial Statements”, to include only the following:

(i) A statement that the auditor’s responsibility is to conduct an audit of the entity’s financial statements
in accordance with Standards on Auditing and to issue an auditor’s report;

(ii) A statement that, however, because of the matter(s) described in the Basis for Disclaimer of Opinion
section, the auditor was not able to obtain sufficient appropriate audit evidence to provide a basis for
an audit opinion on the financial statements; and

(iii) The statement about auditor independence and other ethical responsibilities required in SA 700.

QNO Reasons for No S&A Evidence Old Course – (N18R, M20R)
113.020 TITANIUM CNO— Unique
The auditor’s inability to obtain sufficient appropriate audit evidence (also referred to as a limitation on the
scope of the audit) may arise from:

(i) Circumstances beyond the control of the entity.
(ii) Circumstances relating to the nature or timing of the auditor’s work; or

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