Select Committee on Public Accounts Appendices to the Minutes of Evidence


Annex A

EXPLANATION OF AUDIT OPINIONS

  A disclaimer of opinion is given where the possible effect of a limitation on scope is so material or pervasive that the auditor has been unable to obtain sufficient evidence to support, and so is unable to give, an opinion on the financial statements.

  An adverse opinion is given where the effect of a disagreement by the auditor with the accounting treatment or disclosure of matters is so material or pervasive that the auditor concludes that the financial statements are seriously misleading. Such financial statements do not give a true and fair view.

  A disagreement opinion is expressed where the auditor disagrees with the accounting treatment or disclosure of a matter in the financial statements and in the auditor's opinion the effect of the disagreement is material to the financial statements.

  A scope limitation is expressed where there has been a limitation on the scope of the auditor's work that prevents him from obtaining sufficient evidence to express an unqualified opinion.

  An unqualified opinion is expressed when in the judgement of the auditor the financial statements give a true and fair view and have been prepared in accordance with the relevant accounting requirements.


 
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