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hi make could you please clarify what is the difference between a modified report and unmodified report and also the difference between modified opinion and unmodified opinion. i found it quite confusing thanks loads
A clean audit report (therefore, an unmodified report) is the standard report with no additional paragraphs
A modified report is one that has either (or both) an emphasis of matter of a qualification
A report that is modified by an emphasis of matter is a clean opinion but a modified report
A report modified by a qualification (either an inability to obtain sufficient appropriate audit evidence – formerly called a limitation of scope – or a material misstatement – formerly called a disagreement) is not just a modified report but the audit opinion is also modified by the qualification
So, if you accept that all elephants are animals but not all animals are elephants then, applying that concept to your question, all qualified opinions are a part of a modified report, but not all modified reports have a qualified opinion
Does that make it better or are you just better informed about pachyderms?
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