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In this video tutorial, Dr. Amanda White explains the differences between unqualified and modified audit opinions as outlined in AAS 705. An unqualified opinion indicates that the financial statements are true and fair, free from material misstatements according to accounting standards. In contrast, a modified opinion signals that there is an issue, which could stem from a disagreement with management or an inability to obtain necessary evidence. The video discusses various circumstances that lead to modifying an opinion, the types of audit reports, and how they are structured. It also mentions that Australia's standards are harmonized internationally, with some additional requirements due to the Corporations Act.