Auditor's duty in case of "qualification" in audit report under Section 143(3) - the report should:
AUse vague language
BHide the issue from members
CState the reason for the qualification clearly and the financial impact where quantifiable
DBe silent on the matter
Answer & Solution
Correct answer: D. Be silent on the matter
1. Section 143(3) and SA 705 require clear statement of qualifications with reasons.
2. Financial impact (where quantifiable) must be disclosed.
3. Vagueness or omission defeats the purpose of qualification.
_Source: ICAI BoS CA Final Paper 3, Ch 5 "Company Audit"_
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