Question

In: Accounting

Discuss the circumstances when non-standard reports are issued

Discuss the circumstances when non-standard reports are issued

Solutions

Expert Solution

A non-standard audit report is one that contains:

  • a modified opinion; and/or
  • an "emphasis of matter" or an "other matter" paragraph.

The auditors express a modified opinion because of:

  • a misstatement about the treatment or disclosure of a matter in the financial and/or non-financial information; or
  • a limitation in scope because the appointed auditor has been unable to obtain sufficient appropriate evidence to support, and accordingly is unable to express, an opinion on the financial and/or non-financial information or a part of the financial and/or non-financial information.
  • There is fundamental uncertainties;
  • There are cases of breaches of law; or
  • There are concerns over probity or financial prudence.
  • Auditor having obtained sufficient appropriate audit evidence which concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial and/or non-financial information.

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