Description of the content of Figure 18

Figure 18 is a long flow-chart, showing each of the decisions and considerations an auditor has to take into account, and how these lead to the different types of audit opinion that can be issued.

The first question is "Has the auditor identified any issues during the audit that are material or pervasive and
will affect the reader’s understanding of the financial statements?"

If the answer is no, the auditor issues an unqualified opinion.

If the answer is yes, the auditor issues a qualified opinion. It could be a disclaimer of opinion, an except-for opinion, or an adverse opinion.

• Disclaimer of opinion: The auditor has been prevented from obtaining sufficient audit evidence about an issue. The limitation in scope is pervasive to the reader’s understanding of the financial statements.
• Except-for opinion:
  
• The auditor has been prevented from obtaining sufficient audit evidence about an issue. The limitation in scope is material to the reader’s understanding of the financial statements. OR
• The auditor has disagreed with the treatment or the disclosure of an issue in the financial statements. The disagreement is material to the reader’s understanding of the financial statements.
• Adverse opinion: The auditor has disagreed with the treatment or the disclosure of an issue in the financial statements. The disagreement is pervasive to the reader’s understanding of the financial statements.