Olivia Zuzarte asked 4 weeks ago
It has been mentioned that in complete set of fs , disclaimer on p and l hai but in bal sheet unmodified opinion hai…what does this mean..doesn’t the complete set of fs hav only one opinion
1 Answers
Ravi Staff answered 1 week ago
As per SA 705 and SA 805 it is possible that auditor fails to get sufficient and appropriate evidence about operations because of destructions of records etc so disclaimer can be given on P&L and Cash Flow Statement.
But enough evidence is possible about the assets and liabilities at the end of the year because of physical verification and confirmations. So unmodified opinion on balance sheet can be given.
So yes disclaimer on operations and unmodified opinion on balance sheet at same time is possible.