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Hello Sir,
“Before the reporting standards (ISA 700 etc) were revised, “modified report” was taken to mean that one of these additional paragraphs was included (“without modifying the audit opinion”) and/or that the audit opinion was modified. Basically modified just meant a “changed”, “amended”, “not ‘standard’” auditor’s report. This caused confusion (!)
The term modified should now be used only in describing the audit opinion.”
It’s your answer in the “audit report” question asked by others,is it the modified report are no more only for modified opinion?as in the The newest edition of Kaplan textbook ,it have been separate the modified into two,one if modified report with unmodified opinion another one is modified report with modified opinion,so which one is correct?Thank you.
There is no term “modified report” in ISAs and I have answered numerous posts to support my assertion that it causes confusion.
Any use of this term therefore has to be interpreted:
“Unmodified report” – means a report with a “clean” opinion and no matters (other than KAMs for a listed entity) that might be added in certain circumstances
“Modified report” – means anything that is a variation on the above.
As you quoted from my post, in this context, modified just means “changed”, “amended”, or similar. So Kaplan’s depiction is not incorrect.
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