BMC Associates says Replied on 18th July,2026 09:06 AM

If an auditor concludes that misstatements are pervasive, they cannot be "pervasive only" without also being material. Under SA 705 (Revised), a modified opinion is based on whether the misstatements are material and whether they are pervasive. Material but not pervasive misstatements → Qualified Opinion Material and pervasive misstatements → Adverse Opinion Unable to obtain sufficient appropriate audit evidence, and the possible effects are material and pervasive → Disclaimer of Opinion Therefore, if the auditor has obtained sufficient appropriate audit evidence and concludes that the financial statements contain material and pervasive misstatements, the appropriate opinion is an Adverse Opinion, not an unmodified opinion or a disclaimer. A Disclaimer of Opinion is issued only when the auditor cannot obtain sufficient appropriate audit evidence and the possible effects are both material and pervasive. For expert guidance on auditing standards, audit reports, and financial statement compliance, businesses often consult experienced chartered accountant firms in gurgaon. A qualified chartered accountant gurgaon, trusted ca firm in gurgaon, or professional ca in gurgaon can provide expert assistance with statutory audits and reporting requirements.