A modified unqualified auditor report arises when the auditor believes the financials are fairly stated but also believes additional information should be provided.

Question

Quizplus · Accepted Answer

A modified unqualified auditor report can arise when the auditor believes that the financial statements are fairly stated but also believes that additional information should be provided to the users of the financial statements, such as a change in accounting methods or a material uncertainty related to going concern. In such cases, the auditor may issue an unqualified opinion with a modification to the auditor's report to draw attention to the additional information or disclosures.

A Modified Unqualified Auditor Report Arises When the Auditor Believes