Auditing Standard No. 705 on Non-Unqualified Opinions, issued together with Circular 214/2012/TT-BTC.

1. Scope of application

01. Auditing Standard 705 specifies and provides guidance on the responsibilities of auditors and businesses. Karma auditors (hereinafter referred to as “auditors”) are responsible for issuing audit reports in accordance with the circumstances, regulations and guidelines of Vietnamese Auditing Standard No. 700 And in cases where the auditor concludes that an audit opinion other than an unqualified opinion is required.  

2. Types of audit opinions that are not unqualified opinions.

02. This auditing standard specifies and provides guidance. Three types of audit opinions that are not unqualified opinions., called "Exceptional audit opinion", "adverse audit opinion", and "disclaimer of opinion".Deciding which type of audit opinion is appropriate, rather than a fully unqualified opinion. dependent into the: 

(a) The nature of the matter leading the auditor to issue an audit opinion other than an unqualified opinion, specifically due to material misstatement in the financial statements or the possibility of material misstatement in the financial statements in which the auditor could not obtain sufficient appropriate audit evidence; 

(b) The auditor's judgment regarding the pervasive or potential effects of the issue referred to in (a) on the financial statements.See guidance in paragraph A1 of this Standard.).  

3. Responsibilities of the auditor, the audit firm, and the audited entity 

03. Auditors and audit firms must comply with the provisions and guidance of this Standard during the audit process and in the preparation of audit reports when issuing an audit opinion other than a fully unqualified opinion for the purpose of publishing the audit results of financial statements.

The audited entity (client) and the parties using the audit results need to possess the necessary understanding of the prescribed principles and procedures for preparing audit reports and The guidance in this Standard is for understanding and properly using audit results.

4. Objectives 

04. The objective of auditors and audit firms is to express a clear and appropriate audit opinion, other than an unqualified opinion, on the financial statements, and this is necessary when: 

(a) Based on the audit evidence gathered, the auditor concludes that the financial statements as a whole remain materially misstated; or  

(B) The auditor was unable to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatements.