Modified audit opinion
A modified audit opinion is a qualified opinion, adverse opinion or disclaimer of opinion. The choice depends on whether the auditor has identified a material misstatement or cannot obtain sufficient appropriate evidence, and whether the effect or possible effect is pervasive. The report explains the basis as required.
Worked example
A known material but non-pervasive inventory misstatement may lead to a qualified opinion; a pervasive known misstatement may lead to an adverse opinion.
Common mistake
Do not treat an emphasis-of-matter paragraph as a modified opinion or select an opinion without considering materiality and pervasiveness.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |