Glossary›Assurance, audit evidence and working papers›Modified / qualified conclusion

Glossary term

Cluster A · A34

Tier 1 · differentiator

Modified / qualified conclusion

Definition

A modified conclusion is an assurance conclusion that is not clean. It arises when the practitioner finds a material misstatement that management will not correct, or cannot obtain sufficient evidence. Forms include a qualified conclusion, an adverse conclusion and a disclaimer. The assurance report is lodged with the sustainability report and is publicly visible.

Corporations Act 2001 section 301A

· ASSA 5000 ·

In force

In practice

Three gradations. A qualified conclusion means everything is fine except a specific identified matter. An adverse conclusion means the disclosures as a whole are materially misstated. A disclaimer means the practitioner could not obtain enough evidence to conclude at all.

For a first-time reporter the realistic risk is a qualification arising from a completeness gap or a scope limitation, not an adverse conclusion. The consequence is reputational and regulatory rather than legal in the first instance: the modification is public, ASIC reads it, and the audit committee has to explain it.

What the assurer does with it

The practitioner does not modify without warning. The sequence is a finding raised, management given an opportunity to correct, escalation to the audit committee, and only then a modification. Entities lose the ability to correct when the finding arrives too close to the lodgement date, which is the argument for resolving evidence problems before the engagement rather than during it.

Sources

1

ASSA 5000 General Requirements for Sustainability Assurance Engagements

AUASB

2

FAQs: Review or audit of sustainability reports

ASIC

Review status

Review required

Last reviewed

15 September 2026

Editorial pass, unsigned

Reviewer required

Registered company auditor

Next scheduled review

1 July 2027

Part of

Cluster A, Assurance, audit evidence and working papers

47 terms on what an assurance provider tests, what they accept as evidence, and what a preparer has to be able to produce.