While conducting the current year audit of Finco Ltd, the auditor obtains audit evidence that a
material misstatement exists in the prior period financial statements. This misstatement was
related to recognition of research and development expenditure. The provisions of Ind AS 38
Intangible Assets relating to capitalisation of development expenditure was not applied properly.
On this, unmodified opinion had been previously issued. The current auditor verified that the
misstatement had not been dealt with as required under Ind AS 8 Accounting Policies, Changes in
Accounting Estimates and Errors. Accordingly, the current auditor will:

a)** **Express a qualified or an adverse opinion in the auditor’s report on the current period financial
statements modified with respect to the corresponding figures included therein.

b)** **Express an unmodified opinion in the auditor’s report on the current period financial
statements since it was related to the prior year.

c)** **Express a qualified opinion in the auditor’s report on the current period financial statements,
modified with respect to the corresponding figures included therein.

d)** **Express an adverse opinion in the auditor’s report on the current period financial statements,
modified with respect to the corresponding figures included therein