Why is the opinion of auditor called as modified/unmodified? If auditor gets reasonable assurance that FS are free from material misstatements and reflect the true state of affairs of business, he gives a clean opinion. Why should it be called 'unmodified'. It could be called clean opinion itself right? What is that he is not modifying? I don't understand the reason behind this. Can anyone kindly educate me this?
Its a way of classifying. An opinion which states that financial statements represent a true and fair view is unmodified. Rest all are modified.
Thank you Sir. So, it's just a name given that's it? So, modified opinion doesn't indicate anything like, something which was done earlier is now modified or something like that. Can I understand it like this Sir?