Amber Star Co is a shipbuilder with four contracts in progress at 31 March 20X0. Two of these contracts are for minesweepers; the other two are for cross channel ferries. The contracts to build minesweepers were only won after competitive tendering and major losses are foreseen on both contracts by the time delivery is due in December 20X1. Both the ferry contracts are expected to be profitable, although construction has only recently commenced.

The directors of the company have not made provision for anticipated losses on the minesweeper contracts as they argue that future profits from the ferry contracts will more than compensate for these losses.

What form of audit opinion should the auditor give in respect of the financial statements for the year ended 31 March 20X0?