What is an unmodified opinion?

An unmodified opinion (also referred to as unqualified opinion) is an opinion issued when the auditor concludes that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework (i.e., PFRS, IPSAS). For this purpose, the auditor’s evaluation includes due consideration of quantitative and qualitative materiality established based on the prescribed COA’s audit guidelines. As such, an unmodified/unqualified opinion does not necessarily mean that there were no misstatements found during the audit nor there were no uncorrected misstatements as at year-end. It is possible that the misstatements found during the audit were already corrected by the audited agency or that the uncorrected misstatements are not material, quantitatively and qualitatively. Moreover, this does not entail that the audited agency fully complies with all the laws, rules, and regulations or that the uses of funds on the agency’s programs, projects, and activities are economical, effective, or efficient.

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