Final answer:
An auditor should issue an unmodified opinion when the financial statements are free of material misstatements and accurately present the entity's financial status and operations in conformity with the financial reporting framework.
Step-by-step explanation:
An auditor should give an unmodified opinion when the financial statements do not have any material misstatements and present fairly the financial position, results of operations, and cash flows of the entity in accordance with the applicable financial reporting framework. This is typically the case when: statements present fairly the financial position, results of operations, and cash flows.
An unmodified opinion, also known as an unqualified opinion, indicates that the financial statements give a true and fair view and are free from material misstatements, whether due to fraud or error. It also implies that there have been no significant disputes or disagreements with management regarding financial reporting issues, and that internal controls are not a concern with respect to the accuracy of these financial statements.