## Phrasing the Unmodified Opinion Correctly

### Two Equivalent Approved Phrases

When issuing an unmodified (clean) opinion, the auditor must use one of exactly two phrases (unless law/regulation requires otherwise):

Phrase	When commonly used
"present fairly, in all material respects"	International practice; IFRS-based frameworks
"give a true and fair view"	UK/India tradition; Companies Act contexts

Both are regarded as equivalent — neither is stronger or weaker than the other.

Full template (example):

> "In our opinion, the accompanying financial statements present fairly, in all material respects, [the financial position of ABC Ltd. as at 31 March 20XX] in accordance with [Indian Accounting Standards (Ind AS)]."

### Inappropriate Phrases

The following phrases are NOT acceptable in an unmodified opinion:

Phrase	Why it's wrong
"subject to"	Implies a conditional opinion — opinion depends on resolution of something
"with the foregoing explanation"	Suggests the opinion is weakened or modified by earlier caveats

Why this matters: These phrases dilute the opinion, creating ambiguity for users who rely on a clear, unconditional positive assurance.

Worked example

### Example 1

Correct: "In our opinion, the accompanying financial statements give a true and fair view of the state of affairs of ABC Ltd. as at 31 March 20XX in accordance with Accounting Standards notified under the Companies Act, 2013."

Correct: "In our opinion, the financial statements present fairly, in all material respects, the financial position of XYZ Ltd. as at 31 March 20XX in accordance with Ind AS."

### Example 2

Incorrect: "In our opinion, subject to the matters discussed in Note 12, the financial statements give a true and fair view..."

Why wrong: The phrase 'subject to' introduces a condition. If Note 12 matters are material enough to mention, a modified opinion (Qualified/Adverse/Disclaimer) or an Emphasis of Matter paragraph should be used instead — not a conditional unmodified opinion.

Incorrect: "In our opinion, with the foregoing explanation, the financial statements present fairly..."

Why wrong: 'With the foregoing explanation' implies some deficiency has been explained away, weakening the assurance.

⚠️ Common exam mistakes

Using 'subject to' or 'with the foregoing explanation' thinking it's a softer way to raise concerns — this is not permitted in an unmodified opinion.
Treating 'present fairly' and 'give a true and fair view' as different levels of assurance — they are legally and professionally equivalent.
Forgetting to name the specific applicable financial reporting framework (e.g., Ind AS, AS under Companies Act) in the opinion paragraph.

Reference: Forming an Opinion on the Financial Statements – para 35 — SA 700 (Revised) – Forming an Opinion and Reporting on Financial Statements

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Unmodified Opinion – Appropriate and Inappropriate Phrases (SA 700)

Worked example

⚠️ Common exam mistakes