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Hello again sir. I have understood the distinction between modified and unmodified but I am confused because in chapter 5 you say for example that other matters paragraph is not a modification of the audit report but in chapter 6 in the diagram you say it is modified. What do I not get right? Thank you very much in advance.
The text states, for example “An eom para is not a modification of the audit OPINION … the audit OPINION is not modified in this respect.”
The opinion para is only one part of the report. The addition of an extra para (like the eom para) modifies the report – but does not affect the opinion.
@kim2311 said:
The text states, for example “An eom para is not a modification of the audit OPINION … the audit OPINION is not modified in this respect.”The opinion para is only one part of the report. The addition of an extra para (like the eom para) modifies the report – but does not affect the opinion.
Have to correct you on this bit. An emphasis of matter is not a modification to the audit report (this is a misnomer and does not exist as noted below). It is only meant to highlight an issue raised within the financial statements and hence draw the users attention to the matter. This is generally in relation to going concern or subsequent event issues which the auditor believes the user of the financial statement would want to pay heed to, however it is not restricted to these cases (for example it can also be used to draw the users attention to matters not raised within the financial statements but which is related to the auditors responsibility or considered to be of use to the users. One such area is in relation to laws and regulations).
There is no concept of a modified report, it is actually the opinion which is modified or unmodified. Note: there is no such thing as a modified or unmodified report.
OK – let me rephrase “The opinion para is only one part of the report. The addition of an eom para is an amendment/change to the report (that would otherwise be presented) – but does not affect the opinion.”
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