Section Form of Opinion - ASA 700 - Forming an Opinion and Reporting on a Financial Report - October 2009 - Form of Opinion

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The auditor shall express an unmodified opinion when the auditor concludes that the financial report is prepared, in all material respects, in accordance with the applicable financial reporting framework.
If the auditor:
1. concludes that, based on the audit evidence obtained, the financial report as a whole is not free from material misstatement; or
2. is unable to obtain sufficient appropriate audit evidence to conclude that the financial report as a whole is free from material misstatement,

the auditor shall modify the opinion in the auditor’s report in accordance with ASA 705.

If the financial report prepared in accordance with the requirements of a fair presentation framework does not achieve fair presentation, the auditor shall discuss the matter with management and, depending on the requirements of the applicable financial reporting framework and how the matter is resolved, shall determine whether it is necessary to modify the opinion in the auditor’s report in accordance with ASA 705. (Ref: Para. A11)
When the financial report is prepared in accordance with a compliance framework, the auditor is not required to evaluate whether the financial report achieves fair presentation. However, if in extremely rare circumstances the auditor concludes that such financial report is misleading, the auditor shall discuss the matter with management and, depending on how it is resolved, shall determine whether, and how, to communicate it in the auditor’s report. (Ref: Para. A12)