A modified audit report is normally issued if the financial statements are not free from material misstatement or if the auditors have been unable to obtain sufficient appropriate evidence. If the company did not present it's records with GAAP, they could also receive a modified opinion with a qualification. Auditors have to carefully analyze the data and make sure it is meeting all regulations. A company that recieved a modified audit report was Toshiba. They received a qualified audit, completed a series of investigations, and they ended up expressing an adverse opinion