ISA 705 MODIFICATIONS TO THE OPINION IN THE INDEPENDENT AUDITOR’S REPORT

 ISA 705 is effective for audits of financial statements for periods ending on or after December 15, 2016.

This ISA determines the types of modification to the auditor’s opinion. ISA 705 also explains how the form and content of the auditor's report change when the auditor expresses a modified opinion.

Comments

Post a Comment

Popular posts from this blog

What is the management`s expert and how does the auditor use the management`s expert work?

Image
  The preparation of a company’s financial statements may require ability in a field other than accounting or auditing . In such situations the company may employ or engage experts in these fields to obtain the necessary expertise for preparing of the financial statements . Management’s expert is an individual or organization possessing special experience and knowledge in a field other than accounting or auditing, whose work in that field is used by the company to assist in the preparation of the financial statements. The management`s expert expertise may be needed in the following fields: ·       The valuation of complex financial instruments , land and buildings, plant and machinery, jewelry, works of art, antiques, intangible assets , assets acquired, and liabilities assumed in business combinations and assets that may have been impaired. ·         The actuarial calculation of liabilities associated with insuran...
Read more

ISA 501 – Audit evidence - specific consideration for selected items

  ISA 501 deals with specific considerations by the auditor in obtaining sufficient appropriate audit evidence in respect to certain aspects of inventory, litigation and claims involving the entity, and segment information in an audit of financial statements. The ISA defines the audit procedures that should be performed in obtaining audit evidence regarding: (a) Existence and condition of inventory.  (b) Completeness of litigation and claims involving the entity; and (c) Presentation and disclosure of segment information in accordance with the applicable financial reporting framework.
Read more