Document ID: chunk:federal_register_of_legislation:F2023C01137:body:0:p8
Version: federal_register_of_legislation:F2023C01137
Segment Type: other
Provision Reference: 
Character Range: 20914–24014

for Qualified Opinion," "Basis for Adverse Opinion," or "Basis for Disclaimer of Opinion," as appropriate; and

(b)                Within this section, include a description of the matter giving rise to the modification.

21.               If there is a material misstatement of the financial report that relates to specific amounts in the financial report (including quantitative disclosures), the auditor shall include in the Basis for Opinion section a description and quantification of the financial effects of the misstatement, unless impracticable.  If it is not practicable to quantify the financial effects, the auditor shall so state in this section.  (Ref: Para. A22)

22.               If there is a material misstatement of the financial report that relates to qualitative disclosures, the auditor shall include in the Basis for Opinion section an explanation of how the disclosures are misstated.

23.               If there is a material misstatement of the financial report that relates to the non‑disclosure of information required to be disclosed, the auditor shall:

(a)                Discuss the non‑disclosure with those charged with governance;

(b)                Describe in the Basis for Opinion section the nature of the omitted information; and

(c)                Unless prohibited by law or regulation, include the omitted disclosures, provided it is practicable to do so and the auditor has obtained sufficient appropriate audit evidence about the omitted information.  (Ref: Para. A23-Aus A23.1)

24.               If the modification results from an inability to obtain sufficient appropriate audit evidence, the auditor shall include in the Basis for Opinion section the reasons for that inability.

25.               When the auditor expresses a qualified or adverse opinion, the auditor shall amend the statement about whether the audit evidence obtained is sufficient and appropriate to provide a basis for the auditor's opinion required by paragraph 28(d) of ASA 700 to include the word "qualified" or "adverse", as appropriate.

26.               When the auditor disclaims an opinion on the financial report, the auditor's report shall not include the elements required by paragraphs 28(b) and 28(d) of ASA 700.  Those elements are:

(a)                A reference to the section of the auditor's report where the auditor's responsibilities are described; and

(b)                A statement about whether the audit evidence obtained is sufficient and appropriate to provide a basis for the auditor's opinion.

27.               Even if the auditor has expressed an adverse opinion or disclaimed an opinion on the financial report, the auditor shall describe in the Basis for Opinion section the reasons for any other matters of which the auditor is aware that would have required a modification to the opinion, and the effects thereof.  (Ref: Para. A24)

Description of Auditor's Responsibilities for the Audit of the Financial Report When the Auditor Disclaims an Opinion on the Financial Report

28.               When the auditor disclaims an opinion on the