Choosing the Correct Audit Opinion
Materiality and Pervasiveness
Candidates should determine the correct audit opinion by first identifying whether the issue involves a material misstatement or an inability to obtain sufficient evidence, then evaluating whether the issue is pervasive.
Note
Always separate the type of issue (misstatement vs. scope limitation) from its severity (material vs. pervasive).
Summary
Opinion questions become much easier when answered using a consistent decision process.