Includes: Scope of this Auditing Standard, Types of Modified Opinions, Effective Date

Scope of this Auditing Standard


This Auditing Standard deals with the auditor’s responsibility to issue an appropriate report in circumstances when, in forming an opinion in accordance with ASA 700,[1] the auditor concludes that a modification to the auditor’s opinion on the financial report is necessary.  This Auditing Standard also deals with how the form and content of the auditor’s report is affected when the auditor expresses a modified opinion.  In all cases, the reporting requirements in ASA 700 apply, and are not repeated in this Auditing Standard unless they are explicitly addressed or amended by the requirements of this Auditing Standard. 

Types of Modified Opinions


This Auditing Standard establishes three types of modified opinions, namely, a qualified opinion, an adverse opinion, and a disclaimer of opinion.  The decision regarding which type of modified opinion is appropriate depends upon: The nature of the matter giving rise to the modification, that is, whether the financial report is materially misstated or, in the case of an inability to obtain sufficient appropriate audit evidence, may be materially misstated; and The auditor’s judgement about the pervasiveness of the effects or possible effects of the matter on the financial report.  (Ref: Para. A1)

Effective Date


[Deleted by the AUASB.  Refer Aus 0.3]


See ASA 700 Forming an Opinion and Reporting on a Financial Report.