All 19 Audit Report & Opinions questions
More in Audit Report & Opinions
Who is the auditor's report addressed to and why? When is a qualified opinion issued? When is an adverse opinion issued? When is a disclaimer of opinion issued? What are Key Audit Matters (KAMs)? What does the Basis for Opinion section contain? How do subsequent events discovered after the report date affect the opinion? How is a comparative-period issue handled in the auditor's report? What is an Emphasis of Matter paragraph? What is the difference between Emphasis of Matter and Other Matter paragraphs?
Advertisement
Back to results for “Map”
Auditing & Assurance › Audit Report & Opinions

What is the difference between a misstatement and a scope limitation, and how do they map to opinions?

Intermediate

Answer

A misstatement is something wrong in the statements (leads to qualified 'except for' if material-not-pervasive, or adverse if material-and-pervasive). A scope limitation is an inability to obtain sufficient evidence (leads to qualified if material-not-pervasive, or a disclaimer if material-and-pervasive). So the nature of the problem plus its pervasiveness determines the opinion.
Material, not pervasive | Material and pervasive
Misstatement:    Qualified               | Adverse
Scope limitation:Qualified               | Disclaimer
Real-world example The auditor uses this matrix: a pervasive evidence gap gives a disclaimer, a pervasive misstatement gives adverse.

Common follow-ups: How does pervasiveness change the outcome? | Which axis distinguishes adverse from disclaimer?

Audit Risk & Materiality ISA Standards Audit Report & Opinions
All 19 Audit Report & Opinions questions