The unmodified opinion will

be issued only the auditor is

satisfied that:
Failure to meet any of the
requirements will cause
the auditor to modify his
opinion on the financial
Modification statements.

of the Report Audit

Financial
PSA Financial reporting
statements
framework
 Modification to the Opinion

Material Misstatement Scope Limitation

Material Material Material Material

but not and but not and
Pervasive Pervasive Pervasive Pervasive

Qualified Adverse Qualified Disclaimer

Opinion Opinion Opinion of Opinion
Other types of opinion:

1. Pervasive (Scale)

2. Material (Amount)
 Pervasive Material
Qualified

Adverse

Disclaimer of Opinion
• Circumstances Imposed Scope
Limitation

• Management Imposed Limitation

• Basis for Modification Paragraph
Appropriate
Heading:
Basis for Qualified
Opinion

Basis for Adverse

Opinion

Basis for disclaimer of

opinion
 • Modification of the Auditor’s Report
n Pa r agraph
r Mo dificatio
the Basis fo
addi t ion to
-In

1. Auditor’s  Qualified  Adverse  Disclaimer

Opinion Paragraph Opinion Opinion of Opinion
2. Auditor expresses 3. Auditor expresses
qualified opinion due qualified opinion due
to a material to a scope of
misstatement limitation

“Except for
“Except for
the possible
the effects”
effects”
4. Auditor expresses an 5. Auditor expresses a
adverse opinion. disclaimer of opinion.

“the auditor has not been

able to obtain sufficient
“Financial statements do
appropriate audit evidence
not present fairly……”
to provide a basis for an
audit opinion.”
 EMPHASIS OF MATTER

Uncertainties
Going Concern
Early Application of Unmodified
New Accounting Adequately
opinion
Standards disclosed in
with
Major Catastrophe the notes to
emphasis of
financial
Subsequent matter
statements
Discovery of Facts paragraph
Special Purpose FS
 PSA 710

Reporting on
Comparative Comparative FS

Information
Corresponding
Figures

Covering one or more preceding periods

provides the users of the financial
statements with information necessary to
identify trends and changes.
 for
the
pr
yea ecedin he
of t iod
r g FS nt per
r e
cur

Where amounts
and other
COMPARATIVE
disclosures

FINANCIAL
STATEMENTS

Amounts
and other
Disclosures for the
preceding period FS of the current
period

Form part of
the current
period FS
 for
the
pr
yea ecedin he
of t iod
r g FS nt per
r e
cur

Where amounts
and other
disclosures CORRESPONDING
FIGURES

Amounts
and other
Disclosures for the
preceding period
part of the
current
period FS
 • Prior period financial statements were audited by a
continuing auditor
Reporting on

• Prior period financial statements were audited by another

auditor
Comparative

• Prior period financial statements were not audited

Financial
Statements
Prior period financial statements audited by a continuing auditor

The continuing
auditor’s report
Should:

cover the
current year’s Prior periods
FS

Update his report

on the prior periods
Updating
the report

Re-expressing the opinion

originally issued

Expressing an opinion
differently from the one
originally issued
Prior period financial statements audited by another auditor

• The predecessor auditor reissues the

audit report on the prior period
Two financial statements.
Reporting

• The predecessor auditor does not

want to reissue his report on the prior
Alternatives period financial statements.
Prior period financial statements are not audited

The auditor should state in the report on the current year’s

financial statements that the comparative financial statements are
unaudited.
 Material
Material Entity's Qualified third
misstatement misstatement management party

of fact
 Material
Material Management
misstatement misstatement “refuse”
Audit committee Legal advice

of fact
Reports on
Special PSA 800
Purpose
Financial
Statements
It is when some entities required by their
contractual commitments or government
regulators to present financial statements that
comply with a financial reporting framework
designed to meet the needs of specific users.
 • Other comprehensive basis of accounting such as cash
basis, modified cash basis, or other basis of accounting
Examples of that has authoritative support.

• Financial reporting provisions established by government

Special regulators such as SEC, IC, or BSP.
purpose

• Financial reporting provisions of a contract, such as bond

indenture, a loan agreement or a project grant.
framework
THANK
YOU!
ALL IS WELL