kyle.brown,
Unmodified = a good/clean opinion. Used when the FS fairly present in all material respects the organization under audit based on the applicable framework (e.g. GAAP, IFRS, etc.)
Modified = Used when there is either a GAAP problem or a GAAS problem. A GAAP problem (such as disclosure, presentation, estimates or accounting policy, departures from GAAP) will result in either a “qualified opinion” if the problem is material OR an “adverse opinion” when the problem is VERY material/pervasive.
A GAAS problem result from scope limitations on the audit (e.g. insufficient evidence, significant going concern uncertainties, independence, etc.). The modified opinion when there is a GAAS problem will be either “qualified” OR “disclaimer”. Use qualified when the problem is material (for example, insufficient audit evidence). Use a disclaimer of opinion when the problem is VERY material/pervasive (for example, insufficient evidence, independence is compromised or a significant going concern uncertainty).
Note: When there is a significant going concern uncertainty, the auditor could use either a disclaimer as noted above or an emphasis of matter paragraph in an otherwise unmodified report, but he/she must exercise judgment.
Hope it helps!
REG - Passed
FAR - Passed
BEC - Passed
AUD - Passed
"Faith can move mountains. There's nothing impossible for God"
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