Auc705 2020

School: Liberty University - Course: MGMT 4301 - Subject: Accounting

SAS No. 122 AU-C Section 705A Modifications to the Opinion in the Independent Auditor's Report

Types of Modified Opinion (.02)  Three types of modified opinions: - Qualified - Adverse - Disclaimer  Type of modified opinion depends on: - Natureof the matter (GAAP Departure or Scope Limitation) - Pervasivenessof the effects (GAAP Departure) or possible effects (Scope Limitation)

Types of Opinion UNMODIFIED OPINION (STANDARD WORDING) • Independent • No Scope Limitations • No GAAP Departures QUALIFIEDQUALIFIED Misstatements • Material • Not pervasive Possible Effects • Material • Not pervasive DISCLAIMERPossible Effects• Material•PervasiveADVERSE Misstatements • Material • Pervasive