PROBLEMS OF FORMING A MODIFIED AUDITOR'S OPINION IN MODERN CONDITIONS

Abstract

Forming an opinion on the reliability of financial statements that is adequate to reality is the primary goal of a modern audit. Society and the business environment expect the auditor to provide an objective opinion on the activities of organizations and the reliability of financial statements. In the process of forming an opinion and presenting the results of the audit in the auditor's report, the auditor is guided by the provisions of audit theory, accumulated experience, and the current regulatory framework. First of all, a clear, unambiguous and consistent regulatory framework for auditing is necessary, which would allow the auditor to form an accurate opinion on the reliability of the statements, and the users of the statements to make the right decisions based on them. According to currently applicable auditing standards, there are two types of opinion on the reliability of financial statements: modified and unmodified. While the methodology and logic for forming an unmodified opinion are more or less clear, the formation of a modified opinion, which is the most common in auditing practice, raises many questions and problems, including those related to the preparation of the auditor's report. It should be noted that reports with a modified auditor's opinion require the user to pay special attention to certain aspects of the audited financial statements.