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      Question

      When an auditor modifies the opinion in the audit report

      by stating "except for" a matter, it is referred to as a(n):
      A Unmodified Opinion Correct Answer Incorrect Answer
      B Adverse Opinion Correct Answer Incorrect Answer
      C Qualified Opinion Correct Answer Incorrect Answer
      D Disclaimer of Opinion Correct Answer Incorrect Answer

      Solution

      As per SA 705, a Qualified Opinion is expressed when the auditor concludes that misstatements are material but not pervasive, or when unable to obtain sufficient appropriate audit evidence. It is communicated using the phrases "except for" the effects of the matter described.

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