How does a disclaimer differ from a qualified report in the PCAOB new reporting model?

Expert Solution

Here is the difference between disclaimer and qualified report in PCAOB :

In disclaimer, the auditor is not in a state to make or provide an opinion on the financial statements whereas in the qualified report, except few matters stated for qualifying opinion, others are fairly presented and auditor is able to form opinions for them.

If we discuss this in detail, when an auditor, because of low scope or any other scope limitation, is not able to form the opinion on the financial statements , he is suppose to form a disclaimer of opinion.

This could be because of other reasons like audit procedures nor being completed accordingly or the client has put some limitations due to which auditor is unable to present an opinion.

Now, moving to qualified reports, when an auditor has expressed some qualifying opinions for several matters and except those all the matters have being formed an opinion by the auditors.

So, here we can say that the major difference between these both are that in disclaimer the auditor is unable to present an opinion and in a qualified report the auditor can give fair representation of financial statements except for few for which qualified opinions are given.

ekkarill92 answered 2 years ago

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