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) none of the above

Question

Quizplus · Accepted Answer

ASA 705 requires that the auditor's report includes a clear description of all the substantive reasons for the opinion and where practicable, a quantification of the possible effect on the financial report. Therefore, both options A and B are correct.

When an Adverse, Qualified, or Disclaimer of Opinion Is Issued