Audit report - qualified and disclaimer of opinion

[Bijay Shrestha]

Dear Friends,

Can an Auditor give both Qualified Opinion and Disclaimer of Opinion in the same Audit Report ?

Actually the Auditor wants to give qualified opinion in some area and for some other area he couldnot get the enough evidence, thats why he wants to give disclaimer also.

[DR.MARIAPPAN GOVINDARAJAN]

In an audit report there shall be no disclaimer clause. If it is so then there is no purpose of audit. If he could not get enough evidence he should record it in writing as to what steps he has taken to collect evidence and what are the reasons he could not be able to collect the same.

[Ganeshan Kalyani]

Opinion can have a disclaimer clause but not an audit report.

[KASTURI SETHI]

No CA or CA firm can escape their responsibility by way of disclaimer clause. CA/CA firm cannot take shelter of clause 'Whatever records produced before me ______________'. There are case laws on this issue.

[CAGOPALJI AGRAWAL]

The Auditors's opinion can be modified in three ways (which are mutually exclusive) as well covered under Standard on Auditing 705 - Modification in an Independent Auditors Report. These are

1. Qualified - When there is a material misstatement with regard to an item or number of items in financial statements having limited impact on the financial statements as a whole.

2. Adverse - When these material impacts are not limited but pervasive.

3. Disclaimer - When the auditor is unable to form the opinion due to lack of sufficient and appropriate audit evidences required to form the opinion.

Please refer three Standards on Auditing issued by ICAI and also mandatory under Companies Act 2013 which are 700, 705 & 706 for detailed study or share your full facts to enable me to form my considered view.

AI Summary

Auditor opinion modifications are mutually exclusive; an auditor cannot combine qualified and disclaimer opinions in one report. Modifications to the auditor's opinion are mutually exclusive: a qualified opinion addresses material but limited misstatements, an adverse opinion addresses pervasive misstatements, and a disclaimer arises when the auditor cannot obtain sufficient appropriate audit evidence. An auditor should not use a disclaimer to evade responsibility and must document steps taken and reasons for inability to obtain evidence, applying the appropriate single form of opinion modification consistent with auditing standards and statutory obligations.