Acca aa s21 Notes

disclaimer
of opinion.
September 2021 to June 2022 exams
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The choices can be described in a matrix. Think of ‘pervasive’ as misstatements or lack of evidence 
that affect the financial statements as a whole:
Nature of circumstance
Material but not pervasive
Pervasive
Financial statements are 
materially misstated
A qualified opinion:
Except for ...
Adverse opinion
Unable to obtain sufficient, 
appropriate evidence
A qualified opinion: 
Except for ...
Disclaimer of opinion
6. Example of insufficient appropriate audit evidence
Here is an example of a qualification due to insufficient appropriate audit evidence. Here the problem 
is material, but does not affect the financial statements as a whole and the report says the auditors are 
unable to determine the inventory quantities and then says in their opinion, except for the effects of 
such adjustments for inventory, if any, the financial statements are presented fairly.
Qualified Opinion (extract)
We have audited ...
In our opinion, except for the possible effects of the matter described in the 
Basis for Qualified 
Opinion
section of our report, the financial statements present fairly, in all material respects ...
Basis for Qualified Opinion (extract)
We were unable to obtain sufficient appropriate evidence about the carrying amount of 
inventories because we were unable to attend the count of physical inventories at 31 December 
20X1. Consequently, we were unable to determine whether any adjustments to this amount 
was necessary.