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Reporting




               4.4  Basis for modified opinion

                    When the auditor decides to modify the opinion, they must amend the heading
                     'Basis for Opinion' to 'Basis for Qualified Opinion', 'Basis for Adverse Opinion' or
                     'Basis for Disclaimer of Opinion', as appropriate.


                    The section will explain the reason why the opinion is modified e.g. which
                     balances are misstated, which disclosures are missing or inadequate, which
                     balances the auditor was unable to obtain sufficient appropriate evidence over
                     and why.

                    If possible, a quantification of the financial effect of the modification will be
                     included.

                    If the material misstatement relates to narrative disclosures, an explanation of
                     how the disclosures are misstated should be included, or in the case of omitted
                     disclosures, the disclosure should be included if the information is readily
                     available.

                    Where a qualified or adverse opinion is being issued, the auditor must amend
                     the statement '...the audit evidence is sufficient and appropriate to provide a
                     basis for the auditor's qualified/adverse opinion'.




                  Illustrations and further practice


                  Look at Illustration 5, 6, 7 and 8 in Chapter 10 for examples of basis for opinion
                  paragraphs.































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