SA 700: Auditor's Report#
Elements of Auditor's Report#
- Title
- Addressee
- Opening paragraph
- Management's responsibility
- Auditor's responsibility
- Auditor's opinion
- Other reporting responsibilities
- Signature
- Date
- Address
Types of Opinions#
Unqualified Opinion
- Financial statements give true and fair view
- Prepared in accordance with applicable framework
- Most common and desirable
Qualified Opinion
- Except for effects of matters, financial statements give true and fair view
- Used when:
- Disagreement with management
- Limitation on scope
Adverse Opinion
- Financial statements do not give true and fair view
- Used when material misstatements exist
Disclaimer of Opinion
- Unable to form opinion
- Used when scope limitation is material
Key Phrases#
| Opinion Type | Key Phrase |
|---|---|
| Unqualified | "give a true and fair view" |
| Qualified | "except for the effects of..." |
| Adverse | "do not give a true and fair view" |
| Disclaimer | "we do not express an opinion" |
Matters Requiring Communication#
- Material misstatements
- Significant deficiencies
- Fraud
- Non-compliance