Which of the following types of audit report are termed together as modified reports as per standards…
Under Standard on Auditing (SA) 705 ('Modifications to the Opinion in the Independent Auditor's Report'), there are exactly three types of modified audit opinions/reports: a…
Choose your answer
Which of the following types of audit report are termed together as modified reports as per standards on Auditing (SA) 705?
A. Qualified Report
B. Audit Report with an 'Emphasis of Matter' paragraph
C. Disclaimer of opinion Report
D. Adverse Report
Answer and explanation
Correct answer D
Under Standard on Auditing (SA) 705 ('Modifications to the Opinion in the Independent Auditor's Report'), there are exactly three types of modified audit opinions/reports: a Qualified Opinion (A), an Adverse Opinion (D), and a Disclaimer of Opinion (C). An 'Emphasis of Matter' paragraph (B, governed by SA 706) draws users' attention to a disclosed matter without modifying the auditor's opinion.
Practice for these exams
-
UGC NET Commerce