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3 types of modified audit opinion.

Audit opinion is the auditor conclusion regarding audited financial statement on whether they show true and fair view of entity operation and financial position for the given period.

There are two types of opinion auditor may issue

  • Unmodified audit opinion and;
  • modified audit opinion

There are three types of modified audit opinion, namely;

  • Qualified audit opinion. This opinion is issued when effect of misstatement in the financial statements or inability to obtain sufficient and appropriate audit evidence is only material but not pervasive.
  • Adverse audit opinion. This type of audit opinion is issued when effects of misstatement in the financial statement is both material and pervasive
  • Disclaimer of the opinion. This type of opinion is issued when the effect of reliability to obtain sufficient appropriate audit evidence is both material and pervasive.

3 thoughts on “3 types of modified audit opinion.”

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