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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