“When the auditor modifies the audit opinion, the auditor shall use the heading “Qualified Opinion,” “Adverse Opinion,” or “Disclaimer of Opinion,"…

"When the auditor modifies the audit opinion, the auditor shall use the heading "Qualified Opinion,” “Adverse Opinion,” or “Disclaimer of Opinion," as appropriate, for the Opinion section.” The auditor should consider the following while expressing the opinion in accordance with SA 705, “Modifications to the Opinion in the Independent Auditor's Report". (i) Qualified Opinion The auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, are material, but not pervasive orThe auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, but the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive. (ii) Adverse Opinion: The auditor shall express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements. (iii) Disclaimer of Opinion: The auditor shall disclaim an opinion when he is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and he concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.