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Dharmit Shah asked 1 year ago

Hello Sir,

  1. Can you please list down the cases which can be categorized under Adverse opinion and Disclaimer of opinion which are commonly used by ICAI in our Module under different chapters i.e. which are relevant for CA Finals?
  2. Also, can you list down the same for EMP/OMP paragraph which are commonly used by other standards and concepts in our module?
1 Answers
RaviRavi Staff answered 1 year ago

There is no such database.
You can ask specific doubts
 
Below are examples for different opinions
 

  • QUALIFIED OPINION SHOULD BE GIVEN IN FOLLOWING SITUATIONS, PROVIDED THEY ARE MATERIAL BUT NOT PERVASIVE
  1. Depreciation is not charged.
  2. Interest wrongly capitalized with fixed assets.
  3. Long term investments are not properly valued as per FRF
  4. Auditor not allowed to visit
  5. Revenue expense shown as receivables

 

  • ADVERSE OPINION SHOULD BE GIVEN IN FOLLOWING SITUATIONS, PROVIDED THEY ARE MATERIAL & PERVASIVE:
  1. Going concern assumption is inappropriate but still it is followed, no adjustment for historical cost to realizable and payable value
  2. Contractor followed completion method but AS 7 specifies percentage completion method.
  3. Major subsidiary is not consolidated with holding company financial statements.
  4. Company prepares financial statements as per cash basis, going against accrual principle.
  5. Combination of points mentioned in qualified affecting major part of financial statements (pervasive)
  • DISCLAIMER OPINION SHOULD BE GIVEN IN FOLLOWING SITUATIONS, PROVIDED THEY ARE MATERIAL & PERVASIVE:
  1. Multiple uncertainties exist and auditor is unable to determine possible effect on financial statements
  2. Books of accounts and related documents are seized by government authorities and there is no other means to get them.
  3. Going concern is doubtful and this information is not specified in notes to accounts.
  4. Only Xerox copies are available but o other reliable evidence to support it.
  5. Limitation imposed by management has possible pervasive effect on financial statements

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