Final answer:
No, a basis for a modified opinion is not always the same as a basis for a qualified opinion; they differ based on whether the issue affecting the opinion is material and/or pervasive. A qualified opinion is less severe than an adverse opinion or a disclaimer, which are other forms of modified opinions. option (b)
Step-by-step explanation:
The basis for a modified opinion is not always the same as a basis for a qualified opinion. While both are types of modified audit opinions, the reasons behind them can be substantially different. A qualified opinion is rendered when the auditor concludes that, except for the effects of the matter to which the qualification relates, the financial statements present fairly the financial position of the company. On the other hand, modified opinions also include disclaimers or adverse opinions, which are much more severe. A disclaimer of opinion is issued when the auditor is unable to form an opinion on the financial statements, and an adverse opinion is given when the financial statements contain misstatements that are both material and pervasive. Therefore, the most accurate answer would be (b) No, they have different implications.
Whether a basis for a modified opinion becomes a basis for a qualified opinion depends on the materiality and pervasiveness of the issue. If the issue is material but not pervasive, a qualified opinion may be appropriate. However, if the issue is both material and pervasive, then an adverse opinion or disclaimer might be necessary.