I) An unqualified opinion
Expressed when the auditor concludes that the financial statements give a true and fair view in
accordance with IFRS and The Kenyan Companies Act. An unqualified opinion also indicates
implicitly that any changes in accounting principles or in the method of their application, and the
effects thereof, have been properly determined and disclosed in the financial statements.
ii) A qualified opinion
Expressed when the engagement partner concludes that an unqualified opinion cannot be
expressed but that the effect of any disagreement with management, or limitation on scope is not
so material and pervasive as to require an adverse opinion or a disclaimer of opinion. A qualified
opinion should be expressed as being-'except for' the effects of the matter to which the
qualification relates.
iii) A disclaimer of opinion
Expressed when the possible effect of a limitation on scope is so material and pervasive that the
engagement team has not been able to obtain sufficient appropriate audit evidence and
accordingly is unable to express an opinion on the financial statements.
iv) An adverse opinion
Expressed when the effect of a disagreement is so material and pervasive to the financial
statements that the engagement partner concludes that a qualification of the report is not
adequate to disclose the misleading or incomplete nature of the financial statements.
Kavungya answered the question on May 15, 2019 at 08:49
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Date posted: May 14, 2019. Answers (1)