A- / A+
About us
Review of modified auditors’ reports
1. The Financial Reporting Council (FRC) commenced the proactive screening and review of audit reports since 16 July 2008 in order to identify reports with modified opinion.
2. There are three types of modified opinion in audit reports, which include:

Qualified opinion
Disclaimer of opinion
Adverse opinion
3. All auditors reports, other than those with unmodified opinion, are screened. No review is performed when an auditor’s report merely carries an emphasis of matter paragraph or other matter paragraph with no apparent non-compliance with accounting requirements. Reviews are performed on all other modified auditors’ reports.
4. The FRC follows up directly on cases where an audit qualification in a modified auditor’s report indicates prior period errors that were not identified in the prior period report.
5. Cases not within the remit of the FRC are referred to specified enforcement agencies.

Page last updated: 21 January 2016