Abhinav 2 Questions 0 Answers 0 Best Answers 8 Points View Profile Abhinav Asked: August 17, 20202020-08-17T17:11:31+05:30 2020-08-17T17:11:31+05:30In: UPSC MAINS Different types of audit reports. What are the different types of audit reports in India? cagpolity Share Facebook 1 Answer Recent Rajnish Optimist 145 Questions 255 Answers 237 Best Answers 1k Points View Profile Best Answer Rajnish Optimist 2020-08-22T18:17:33+05:30Added an answer on August 22, 2020 at 6:17 pm There are four types of audit reports in India. They are: Unmodified/Unqualified Report Modified Report Adverse Opinion Disclaimer of Opinion Unmodified/Unqualified/Clean Report: On the basis of the information collected, the auditor holds an unmodified/unqualified view that the financial statements were prepared in compliance with the relevant fair reporting system. This suggests that financial statements are free of material errors. The accounting standards are fully implemented and the annual statement is drawn up using widely recognized accounting principles. Modified/Qualified Reports: Either the auditor is unable to obtain any proof of a mistake, or he obtains proof that the financial statements are inaccurate, but the same is not prevalent. When the misstatement is deemed to be material but not pervasive, then the audit opinion is qualified as a misstatement. Adverse Opinion The auditor obtains proof that the misstatement is both material and pervasive, then it is said to be adverse opinion. when the effects on the financial statements could not be determined because it is practically not possible to do so, then the misstatement can be considered to be material as well as pervasive. Disclaimer of Opinion Due to limitations imposed by the management, or natural calamities or extraordinary circumstances, the auditor is unable to obtain any evidence with respect to a misstatement that is both material and pervasive, then it is disclaimer opinion. when the possible consequences of this incapacity to obtain sufficient audit-proof are deemed both material and pervasive to the financial statement, then a disclaimer of opinion can be given in such circumstances. 1 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Pathalgadi? What is Bodo Accord?
There are four types of audit reports in India. They are:
Disclaimer of Opinion