25.

Modification to the Independent Auditor’s Report

1. What are the major reasons for changing the standard unmodified
report?
- The major reasons for departure from the standard unqualified
report are:
 Disagreement with management about sa pag accepts sa
accounting principles na napili, og sa method na gigamit
 Limited ra ang ma cover sa audit kay kulang ang evidence
 Using extra paragraphs para ma emphasize ang important
matters.
 Different opinion on prior year comparative statements.
 Mag depend sa work ang reports sa ubang independent
auditors
 Auditor is not independent.
2. What are the circumstances when the financial statements are
considered to be materially misstated ?
- Financial statements are materially misstated when they
contain misstatements whose effect, individually or in the
aggregate, is important enough to cause them not to be
presented fairly, in all material respects, in conformity with
generally accepted accounting principles.
3. What are the circumstances an auditor considers a scope limitation
in the conduct of an audit?
- The auditor's inability to obtain sufficient appropriate
audit evidence may arise from: (a) Circumstances beyond the
control of the entity; (b) Circumstances relating to the nature or
timing of the auditor's work; or (c) Limitations imposed by
management.
4. How does an Opinion Paragraph being stated under the following
Types of Opinion?
A. Qualified Opinion – sa qualified opinion kay ang opinion sa
auditor about sa financials may fairly presented.
B. Adverse Opinion – professional opinion sa auditor na ga state na
ang financial statements sa company kay
misrepresented, misstated og dli accurate
C. Disclaimer of Opinion – statement ge hatag sa auditor na walay
Opinion na ihatag about sa financial statements
Sa client
5. How should the auditor’s report be dated?
- The auditor should date the audit report no earlier than
the date on which the auditor has obtained sufficient appropriate
evidence to support the auditor's opinion.