The correct answers are: A full explanation of the reasons for modification; If possible, a quantification of the effects on the financial statements; Reference to any non-compliance with laws and regulations.

This detailed explanation should ensure that shareholders understand why the financial statements are qualified, so that there will be no need to give a speech at the annual general meeting, although auditors are entitled to speak at an AGM where matters affect them.

Lastly, there is no requirement to give a discount from the audit fee! This would suggest that the qualified audit opinion somehow rendered the auditors at fault, which is not at all the case, and also would be a bar to the independence of the auditors in giving the necessary qualified opinion.