Based on Singapore’s accounting standards, auditors would put an ‘emphasis of matter’ if an issue warrants deeper discussion but does not affect the auditors’ opinion.
Matters that affect their opinion would be highlighted by way of a qualified opinion, a disclaimer of opinion or an adverse opinion – in order of severity.
Is there a better way?
Perhaps we could follow the World Health Organisation’s numerical approach on the level of seriousness on H1N1.
Alternatively, we could go on the colour-coding way.
Of course, I am not wholly serious about the above suggestions.
But the point here, let us not try to make our profession and our work complicated by using “chim” words/phrases that the ulitmate users of the auditor’s report may not understand.
Can we do better?
Hi Edgar,I disagree. Cheers to the qualified few who understands. That makes us different from the man on the street.
Hi, EdgarI like to challege my auditors qualified opinion on inventory . I have just taken over a company accounts and found that the last accounts manager has not filed AGM or accounts with auditors. The last accounts, auditors qualified based on inventory in sight, but the girls could not produce the recipt or invoice. The boss paid the amount and got goods but dont have invoice. overseas. Accordingly to the girl, the auditor asked where is the invoice, she said dont have. auditor said ok. that qualify the report. I felt that they both should have taken active step to have the inventory revalued or impaired or to see customs value of goods. Is this right to simply qualify reports when people on the other end could not be bothered. and worse, get directors who sign not knowing its a qualified report. I like to challege the auditors and find those evidence or seek another audit opinion. Pls tell me the regulations on this.