Discuss the objective of the auditor as per Standard on Auditing (SA) 705 “Modifications to The Opinion in The Independent Auditor's Report”.
CA Intermediate · Auditing and Ethics · MTP · May 2024
Discuss the objective of the auditor as per Standard on Auditing (SA) 705 “Modifications to The Opinion in The Independent Auditor's Report”.
Suggested Answer and Working Notes:
(a) As per Standard on Auditing (SA) 705 “Modifications to the Opinion In The Independent Auditor's Report”, the objective of the auditor is to express clearly an appropriately modified opinion on the financial statements that is necessary when: (a) The auditor concludes, based on the audit evidence obtained, that the financial statements as a whole are not free from material misstatement; or (b) The auditor is unable to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatement.
Topics: Audit Report
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