When an adverse, qualified or disclaimer of opinion is issued, ASA 705 requires that the auditor's report includes:
A) a clear description of all the substantive reasons for the opinion.
B) where practicable, a quantification of the possible effect on the financial report.
C) both A and B
D) neither A nor B

Question

Quizplus · Accepted Answer

According to ASA 705, both a clear description of all the substantive reasons for the opinion and, where practicable, a quantification of the possible effect on the financial report are required to be included in the auditor's report when an adverse, qualified, or disclaimer of opinion is issued.

When an Adverse, Qualified or Disclaimer of Opinion Is Issued