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CMA Intermediate · Corporate Accounting and Auditing · Audit Report and Reporting under CARO

Under SA 705 (Revised), which three types of modified opinion can an auditor express?

SA 705 (Revised) establishes three types of modified opinions: qualified opinion, adverse opinion and disclaimer of opinion. Emphasis of Matter and Other Matter paragraphs fall under SA 706 and do not change the opinion, and an unmodified opinion is by definition not modified.

  1. AQualified opinion, adverse opinion and disclaimer of opinionCorrect
  2. BQualified opinion, emphasis of matter and other matter opinion
  3. CAdverse opinion, unmodified opinion and disclaimer of opinion
  4. DQualified opinion, going concern opinion and adverse opinion

Explanation

SA 705 (Revised) establishes three types of modified opinions: a qualified opinion, an adverse opinion and a disclaimer of opinion. Emphasis of Matter and Other Matter paragraphs are dealt with in SA 706 and do not modify the opinion. An unmodified opinion is not a modified opinion.

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