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Qualified opinion and disclaimer of opinion

santosh kumar (student) (186 Points)

14 November 2017

Hi CCI members

Wishes to you.

Can anybody help me with this.

Can auditor issue qualified opinion on some items and disclaimer on some other items in the financila statements.

In simple words can an auditor issue more than one opinion in the audit report, i.e., reporting not on overall financial statement basis but on point wise basis.

Thank you in advance

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2 Replies

(Guest)

i think no...reason being auditor is suppose to give opinion whether financial statement as a whole are free from material misstatement or not..so by this we can draw the conclusion that financial statement as a whole are considered not on individual item by item basis and as we are talking about whole so only one opinion is possible.

CA PRADEEP C B (Prop: Pradeep C & Company Chartered Accountant Palakkad Kerala) (166 Points)
Replied 18 November 2017

Your question needs some readings as follows:
As per Standards on auditing 320
1. An auditor can set overall materiality level, and individual materiality levels for particular transactions, disclosures, etc. ...ie. . at the assertion level.
This will helps to co-ordinate the entire findings and to draw an opinion. Now your difficulty may be removed.

Importance of SA 320:
1. if your aggregate of undetected and uncorrected misstatements exceeds the overall materiality level, it is a material misstatement.
2. now modifications to opinion as per SA 705 is required.
3. depending upon the sufficient appropriate audit evidence that it is a material misstatement and pervasiveness of material misstatements, modified your opinion as disclaimer, qualified and adverse.

Please read the standards on auditing. Above information is only a summary.

That's why only one opinion is possible.