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Wiley Practitioner's Guide to GAAS 2023, 2nd Edition
book

Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

by Joanne M. Flood
April 2023
Intermediate to advanced content levelIntermediate to advanced
1056 pages
34h 59m
English
Wiley
Content preview from Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

33AU-C 705 Modifications to the Opinion in the Independent Auditor's Report

SCOPE

AU-C 705 provides guidance for auditors who conclude that they must modify their opinion. (AU-C 705.01) Note that the reporting requirements of AU-C 700 and 703 apply. They are not repeated in this section. Readers should refer to the chapters on those sections for additional guidance.

DEFINITIONS OF TERMS

Source: AU-C 705.06. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Modified opinion, Pervasive.

OBJECTIVES OF AU-C 705

The objective of the auditor is to express clearly an appropriately modified opinion on the financial statements that is necessary in the following circumstances:

  1. the auditor concludes, based on the audit evidence obtained, that the financial statements as a whole are materially misstated or
  2. the auditor is unable to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatement.

(AU-C 705.05)

REQUIREMENTS

WHERE MODIFIED OPINIONS ARE REQUIRED

Circumstances may require that the auditor not express an unqualified opinion on the financial statements. A modified opinion should be issued when:

  • The auditor concludes the financial statements as a whole are materially misstated ...
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Publisher Resources

ISBN: 9781394152704Purchase Link