Qualified, Adverse, Disclaimer — when and how to modify.
To express clearly a modified opinion when the auditor concludes that the FS are not free from material misstatement, or is unable to obtain sufficient appropriate audit evidence.
SA 705 sits in the Reporting phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 705 into practice — built from the ICAI working-paper set, free to download.
And when you want SA 705 executed and documented automatically — your first audit on CORAA is free.
SA 705 — Modifications to the Opinion (Revised) — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Qualified, Adverse, Disclaimer — when and how to modify. To express clearly a modified opinion when the auditor concludes that the FS are not free from material misstatement, or is unable to obtain sufficient appropriate audit evidence.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 705 in the reporting phase, that means evidencing: Three forms of modified opinion: Qualified, Adverse, Disclaimer; Choice based on (a) nature of the matter — misstatement vs scope limitation — and (b) pervasiveness; Basis for Modified Opinion paragraph quantifying the matter where practicable.
