Question

"In our opinion, except for the effects of not capitalizing certain lease obligations as discussed in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the company as of December 31, 2017"

Based on the statement above, what type of audit opinion is being expressed?

a. adverse
b. disclaimer of opinions
c. qualified
d. unqualified

Answer 1

An unqualified opinion is being expressed.

Step-by-step explanation:

The type of audit opinion being expressed based on the statement is an unqualified opinion (d).

An unqualified opinion is given when the auditor concludes that the financial statements are presented fairly and in accordance with the applicable financial reporting framework, and there are no material misstatements. In this case, apart from the effects of not capitalizing certain lease obligations as discussed in the preceding paragraph, the auditor believes that the financial statements present the company's financial position as of December 31, 2017, fairly in all material respects.

This indicates that the auditor has no reservations about the financial statements, except for the specific issue mentioned, and believes that they provide a true and fair view.