You are the auditor of Ounass Company and have started work on the current year audit. Ounass is a distributor of high-end designer clothing doing business in the last three years. Your firm has handled the audit of Ounass eversince. Recently, the Ounass business has suffered as a result of low-consumer spending and increased competition in the past two years. Later, as you were discussing with Ounass personnel, it was revealed that the counting of inventory was performed a few days ago at the warehouse without prior notice to you (being the auditor). No documentation or feedback from that counting of inventory was given to the audit team, except for OMR 10,000 inventory adjustment in the books, no reason was given on the adjustment. You have discussed the issue with senior management, and they are aware that audit evidence is missing regarding the OMR 100,000 amount of inventory. Inventory list provided was incomplete and cost data was inaccurate. There is no other available alternative method to validate the balance of inventory at this time. Total assets of Ounass is OMR 500,000 and the balance of inventory is considered significant.

Required : Explain your answer to the following question

1)What are the key decision points that could be obtained by the auditor from the case in forming his opinion? Determine the appropriate auditors opinion to be included in the auditors report whether Unmodified Opinion or Modified Opinion. Justify your decision.