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What is the difference between modifying the audit report and modifying the audit opinion.
A good question which I hope is now clarified in the relevant Chapters (5&6) of the notes which were revised in December (so check out the latest edition if you downloaded before then). In summary:
All auditor’s reports include:
Title
Opinion – modified/unmodified
Basis of opinion
KAMs (listed companies only)
Management’s responsibilities
Auditor’s responsibilities
Date, etc
The auditor’s report may also include, where relevant:
EoM
MURGC
Other mattersBefore 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.
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