Final answer:
The risk that may result in the auditor issuing an unmodified opinion on financial statements that are materially misstated is the risk of material misstatement.
Step-by-step explanation:
The risk that may result in the auditor issuing an unmodified opinion on financial statements that are materially misstated is the risk of material misstatement. This means that there is a risk that the financial statements contain material errors or omissions that could potentially change the perception of the financial position or performance of the company.
For example, if a company fails to properly record a significant liability for a pending lawsuit, the financial statements may present a misleading picture of the company's financial health. If the auditor fails to detect this material misstatement, an unmodified opinion may be issued, indicating that the financial statements are free from material misstatements when, in fact, they are not.
The auditor's responsibility is to assess the risk of material misstatement and to perform procedures to obtain sufficient and appropriate evidence to address those risks. This includes performing tests of controls and substantive procedures, as well as considering the inherent risks and the control environment of the company.