ACCA AA · Chapter 13 · Question 7 of 12
Which situation would lead the auditor to disclaim an opinion under ISA 705?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The auditor is unable to obtain sufficient appropriate evidence and the possible effects of undetected misstatements could be both material and pervasive
Explanation
A disclaimer is given when the auditor cannot obtain sufficient appropriate evidence and the possible effects could be both material and pervasive. A material misstatement leads to a qualified or adverse opinion. Adequately disclosed going concern uncertainties and other disclosed matters are dealt with by additional sections or paragraphs without modifying the opinion.
More Misstatements and the auditor's report MCQs
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- Q12Under ISA 700, which of the following is included in the Basis for Opinion section of the auditor's report?
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