UT & Co. an independent audit firm, intends to modify its opinion in the auditor's report. Explain when it is necessary to modify the opinion in light of SA 705 ?

Modifications to the Opinion in the Independent Auditor's Report SA 705: This Standard on Auditing (SA) 705 deals with the auditor's responsibility to issue an appropriate report in circumstances when, in forming an opinion in accordance with SA 700 (Revised), the auditor concludes that a modification to the auditor's opinion on the financial statements is necessary. The objective of the auditor is to express clearly an appropriately modified opinion on the financial statements that are necessary when: The auditor concludes, based on the audit evidence obtained, that the financial statements as a whole are not free from material misstatement; or The auditor is unable to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatement.