CA Ayush has recently qualified and has joined a CA Firm. On going through various audit reports, he observed that different phrases were used to…

Appropriate and Inappropriate Phrases while drafting an Unmodified Opinion: When expressing an unmodified opinion on financial statements, the auditor's opinion shall, unless otherwise required by law or regulation, use one of the following phrases, which are regarded as being equivalent: (i) In our opinion, the accompanying financial statements present fairly, in all material respects, [...] in accordance with [the applicable financial reporting framework]; or (ii) In our opinion, the accompanying financial statements give a true and fair view of [...] in accordance with [the applicable financial reporting framework]. The phrases "present fairly, in all material respects,” and “give a true and fair view" are regarded as being equivalent. Inappropriate Phrases: When the auditor expresses an unmodified opinion, it is not appropriate to use phrases such as “with the foregoing explanation" or "subject to” in relation to the opinion, as these suggest a conditional opinion or a weakening or modification of opinion.