[upupup]

Hi, I am having trouble understanding A1 M8 the different opinions:

Unmodified Current year, Disclaimed Prior year – Nonissuer
Here is the audit report summary of this situation:
Introduction
Same

Mgt Responsibility for FS
Same

Auditor’s Responsibility
Our responsibility is to express an opinion… Except as explained in the Basis for Disclaimer of Opinion paragraph, we conducted in accordance w….
We believe that audit evidence we have obtained is sufficient…

Basis for Disclaimer of Opinion on 20X1 Operations
Same – explaining problem

Disclaimer of Opinion
Because of significane of the matter described in the basis paragraph… Accordinly, we do not express an opinion on the results of Dec 31, 20X1.

Opinion
In our opinion, except for the effect on the 20X1 FS of…., FS referred to above present fairly, in all material respects….

I don’t understand how does this work at all. So you have a disclaimer last year and this year is automatically a disclaimer even though it’s F/S generates a unmodified opinion?

Please help!