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CAS 705, Modifications to the Opinion in the Independent Auditor's Report

Ef­fec­tive date:

Effective for audits of financial statements for periods ending on or after December 14, 2010 except for subsequent amendments

Overview

CAS 705, Modifications to the Opinion in the Independent Auditor's Report, deals with the auditor's responsibility to issue an appropriate report in circumstances when, in forming an opinion in accordance with CAS 700, the auditor concludes that a modification to the auditor's opinion on the financial statements is necessary.

CAS 705 establishes three types of modified opinions, namely, a qualified opinion, an adverse opinion, and a disclaimer of opinion. The decision regarding which type of modified opinion is appropriate depends upon: (i) the nature of the matter giving rise to the modification, that is, whether the financial statements are materially misstated or, in the case of an inability to obtain sufficient appropriate audit evidence, may be materially misstated; and (ii) the auditor's judgment about the pervasiveness of the effects or possible effects of the matter on the financial statements.

His­tory of CAS 705

Date

Development

Comments

June 2017

CAS 705 has been revised and reissued as a result of the issue of the new auditor reporting standards, including the issue of CAS 701, Communicating Key Audit Matters in the Independent Auditor's Report.

The revised CAS 705 is effective for audits of financial statements for periods ending on or after December 15, 2018.  Earlier application is permitted.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amendments under consideration

  • None

Correction list for hyphenation

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