Page 192 - CA Final PARAM Digital Book.

In other cases, explain that the audit opinion has been modified because of the effects or
possible effects of the unresolved matter on the comparability of the current period’s
figures and the corresponding figures.
Case Discussion & Conclusion
In the instant Case, if P Ltd. does not make provision for doubtful debts the auditor will have to modify his
report for both current and previous year’s figures as mentioned above. If however, the provision is made,
the auditor need not refer to the earlier year’s modification.
Author’s note
• In current year, a previous year matter is unresolved however it does not affect current year
materially then why current year audit report is modified?
o In Comparative Financial Statement Approach we have to comment on both years, CY
& PY so here we should always comment about PY.
o In Corresponding figures approach we generally comment on CY only, but if there is
misstatement in PY then comparison on CY with PY goes wrong and gives in
appropriate interpretations, hence it is mandatory to modify with respect to PY and
explain it is done because CY comparison and interpretation is going wrong

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