Page 140 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

2. Qualified Opinion wordings: When the auditor expresses a qualified opinion due to a material misstatement
in the financial statements, the auditor shall state that, in the auditor’s opinion, except for the effects of the
matter(s) described in the Basis for Qualified Opinion section.
2A. Reporting with a Fair Presentation Framework:
(a) When reporting in accordance with a fair presentation framework, the accompanying financial statements
present fairly, in all material respects (or give a true and fair view of) […] in accordance with [the applicable
financial reporting framework];
2B. Reporting with a Compliance Framework:
(b) 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].
2C. Modification Arising from unable to obtain SAAE: 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.
3. Adverse Opinion wordings:
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.
3A. Reporting with a Fair Presentation Framework:
(a) 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];
3B. Reporting with a Compliance Framework:
(b) 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].
4. Disclaimer of Opinion Wordings: When the auditor disclaims an opinion due to an inability to obtain
sufficient appropriate audit evidence, the auditor shall:
4A. Reference to basis for Disclaimer:
(a) 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;
4B. No Opinion Expressed:
(b) State that the auditor does not express an opinion on the accompanying financial statements.
4C. Amend 1st statement of Audit Report:
(c) Amend the 1 statement of Audit report required by SA 700 (Revised), which indicates that the financial
st
statements have been audited, to state that the auditor was engaged to audit the financial statements.
4D. No KAM: If the auditor disclaims an opinion on the financial statements, and there's no legal or regulatory
requirement, the auditor's report should not include a Key Audit Matters section, as per SA 701.

(CNO - SA 705.140) What is the Basis for Modification of Opinion (Qualified/Disclaimer /Adverse)?
When the auditor modifies (Qualification/ Disclaimer/ Adverse) the opinion as above on the financial statements,
the auditor shall, in addition to the specific elements required by SA 700 (Revised):
1. Amending the Heading: Amend the heading “Basis for Opinion” to “Basis for Qualified Opinion,” “Basis for
Adverse Opinion,” or “Basis for Disclaimer of Opinion,” as appropriate; and
2. Description of the Matter: Within this section, include a description of the matter giving rise to the
modification.
2A. Material Misstatement in Financial Statements:
• Relates to specific Amount: If there is a material misstatement of the financial statements that relates to
specific amounts in the financial statements (including quantitative disclosures in the notes to the
financial statements), the auditor shall include in the Basis for Opinion section, a description and

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