1)

2)

Qualified Opinion Due to Inadequate Disclosure

Affects auditor's report in 2 respects
1) Standard introductory & scope paragraphs

3) Explanatory paragraph added after scope paragraph to describe nature of omitted disclo-
sure
4) Opinion paragraph refers to omitted disclosure, limiting assurance provided by opinion

"In our opinion, except for the omission of the information discussed in the preceding para-
graph, the financial statements referred to above ... "
When statement of cash flows is omitted
1) Introductory paragraph modified to omit reference to statement of cash flows
2) Standard scope paragraphs

1) Explanatory paragraph added after scope paragraph to indicate omission of statement of

cash flows
2) Opinion paragraph refers to omitted statement of cash flows

"In our opinion, except that the omission of a statement of cash flows results in an incom-
plete presentation as explained in the preceding paragraph, the financial statements re-
5) ferred to above ... "

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178

Comparative Financial Statements

When financial statements for 2 or more periods are presented in comparative form, the audi-
tor's report applies to all of the financial statements presented.

A continuing auditor may issue a standard report with an unqualified opinion

Only appropriate when unqualified opinion had been issued on prior periods' financial
statement,

 Language in introductory & scope paragraphs modified to refer to audits, rather than
au-
dit

 Language in introductory & opinion paragraph modified to refer to all financial state-
ments presented
Report dated as of completion of fieldwork of most recent period

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Reporting - Module 4