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Is there any time or stages where an audit report should be modified even when the FS as whole is misstated or unable to obtain audit evidence upon which to express an opinion, disclosure to the notes are not adequate , policies not appropriate and estimates not reasonable and going concern basis not appropriate.
Are we only subject to qualified opinion, adverse opinion and disclaimer opinion? Or can the Auditor modify both the report and opinion ?
It is either umodify report and umodify opinion meaning FS free from material misstatements.Or unmodify report but modify opinion e.g qualified opinion …except for ….meaning material uncertainties related to going concern
Emphasis of matter paragraph unmodify report but qualified opinion that is disclosure was adequate .
The question , at what instant must the audit report be modified alongside audit opinion?
Thank you sir.
The technically correct usage of the word modified is to describe the opinion: a modified OPINION means qualified or adverse or disclaimer.
Strictly speaking, the term modified is best used only to describe the audit opinion.However, it is also often used in practice (as it used to be used also in the old reporting ISAs) to describe the auditor’s report as a whole (and this is where potential confusion arises). The auditor’s report is described as “modified” (meaning “changed/altered/adapted”) if:
– the opinion is modified; AND/OR
– the report includes paragraphs which are only included in certain circumstances (e.g. an EoM or going concern matters para or other matters para).The technically correct usage of the word modified is to describe the opinion: a modified OPINION means qualified or adverse or disclaimer.
Strictly speaking, the term modified is best used only to describe the audit opinion.However, it is also often used in practice (as it used to be used also in the old reporting ISAs) to describe the auditor’s report as a whole (and this is where potential confusion arises). The auditor’s report is described as “modified” (meaning “changed/altered/adapted”) if:
– the opinion is modified; AND/OR
– the report includes paragraphs which are only included in certain circumstances (e.g. an EoM or going concern matters para or other matters para).
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