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DharaDhara asked 1 year ago

Sir 2 questions reated to SA 705 1)sir please elaborate on what can be a qualified opinion i.e just material and not pervasive. just confused between what can be core difference between material and not pervasive AND material and pervasive 2) can a opinion be qualified , adverse and disclaimer ? or any 2 out of 3 opinion?  

1 Answers
RaviRavi Staff answered 1 year ago

Material Misstatement which is Pervasive (Spread Across Financial Statement) — Adverse Opinion — Eg 5 branches not included in financial statement
Material Misstatement which is NOT Pervasive — Qualified Opinion — Eg Inventory Overstated by 5 lakhs
No Sufficient & Appropriate Evidence which is Pervasive — Disclaimer — Eg Original books of accounts not available 
No Sufficient & Appropriate Evidence which is NOT Pervasive– Qualified — Eg Not allowed to visit 1 godown with 10 lakh stock 

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