(i) Limitation in the scope of the audit
This arises in a situation where in the auditor‘s duties have been compromised by the entity, e.g. where the terms of engagement specify that the auditor will not carry out an audit procedure he believes is necessary. In such a case, the auditor would attempt to carry out reasonable alternative procedures to obtain sufficient appropriate audit evidence to support an unqualified opinion.
(ii) Emphasis of matter
This is a statement included in a note to the financial statements to highlight a matter affecting the financial statements. This statement does not affect the auditor‘s opinion. It would preferably be included after the opinion paragraph and would ordinarily refer to the fact that the auditor‘s opinion is not qualified in this respect. The matter could be with respect significant uncertainty about a going concern problem, the resolution of which is dependent upon future events and which may affect the financial statements.
