Question

Examples of unmodified opinions which contain modified wording (without adding an explanatory paragraph) include?

1) the use of other auditors
2) the lack of consistent application of generally accepted accounting principles
3) substantial doubt about the audited company (or the entity) continuing as a going concern
4) lack of consistent application of GAAP

Answer 1

Unmodified opinions with modified wording are auditor's reports expressing an unqualified opinion while highlighting specific items like the use of other auditors, inconsistencies in GAAP application, or going concern doubts.

Step-by-step explanation:

Examples of unmodified opinions with modified wording in auditing refer to auditor's reports that express an unqualified opinion on the financial statements but include additional language to highlight certain matters. Although the auditor's opinion is not modified, the wording changes to draw attention to specific items. The examples provided:

Lack of consistent application of GAAP also pertains to inconsistencies in following accounting standards. While these might be highlighted, if they are not material to the overall financial statements, the opinion remains unmodified.