Distinguish the three types of modified opinions that the auditor may issue on financial statements audited by him. (6 marks)
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- Qualified opinion where effect of misstatements in the financial statements or inability to obtain sufficient appropriate audit evidence is only material but not pervasive.
- Adverse opinion where the effect of misstatements in the financial statements is both material and pervasive.
- Disclaimer of opinion is where the effect of reliability to obtain sufficient appropriate audit evidence is both material and pervasive