An unmodified opinion is the outcome sought in an independent audit and the most common type of opinion. The auditor issues an unmodified opinion if sufficient appropriate audit evidence has been obtained and no material misstatement has been identified in the financial statements.
An unmodified opinion does not mean the financial statements contain no errors at all; it provides reasonable assurance that they are free from material misstatement. An "emphasis of matter" paragraph may be added to the report where necessary; this does not modify the opinion.
Source: BDS 700
Related terms
Independent auditor's reportThe formal report in which the auditor sets out in writing the opinion reached on the financial statements and the basis for that opinion.Qualified opinionThe opinion the auditor expresses when misstatements, or a lack of evidence, are material but not pervasive.MaterialityA misstatement being large enough, individually or together with others, to influence the economic decisions of users of the financial statements.Reasonable assuranceA high but not absolute level of assurance; the level of assurance the auditor provides on the financial statements in an independent audit.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.
Last updated: October 22, 2026 · This definition is for general information only.