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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?


Rama Sesha Gopal

Rama Sesha Gopal

CA Inter

10K+

17-Nov-20 20:07

34

Answers (2)

Its a way of classifying. An opinion which states that financial statements represent a true and fair view is unmodified. Rest all are modified.


Suraj Lakhotia

Suraj Lakhotia

Admin

18-Nov-20 08:13

Suraj Lakhotia Admin

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?


Rama Sesha Gopal

Rama Sesha Gopal

CA Inter

10K+

18-Nov-20 13:22

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