Final answer:
A set of financial statements can be altered to potentially receive an unmodified audit opinion if the changes address the adequacy of disclosure issues. This is dependent on the nature of the disclosure issue and agreements made between management and the auditor prior to the finalization of the audit report.
Step-by-step explanation:
The client can change a set of financial statements to receive an unmodified opinion instead of an opinion qualified as to the adequacy of disclosure, and the correct answer is (d) It depends on the nature of the disclosure issue. If the issue is one that can be rectified by providing additional information or an adjustment to the financial statements, and if such a change fully addresses the concerns raised by the auditors resulting in compliance with the applicable financial reporting framework, then the financial statements can be amended, and an unmodified opinion may be issued upon re-evaluation by the auditor. Auditors issue a qualified opinion when there is a disagreement with management regarding the interpretation, application, or adequacy of disclosures in the financial statements. If management and the auditor come to an agreement on how to resolve the issues and the financial statements are amended accordingly, a previously qualified opinion can be updated to unmodified, assuming all other aspects of the financial statements are also presented fairly. However, this process must be done before the audit report is finalized and issued. After the audit report has been issued, opinions cannot retrospectively be changed; instead, any subsequent changes to the financial statements would be captured in the next reporting period's audit.