Final answer:
Auditors can issue an audit report in the form of an Unqualified Opinion, Qualified Opinion, Adverse Opinion, or a Disclaimer of Opinion, depending on the financial statements' compliance with GAAP and the auditor's ability to gather sufficient information.
Step-by-step explanation:
When an auditor issues an audit report for a public company, they have several opinions they can express on the financial statements. The form of the report generally falls into one of four categories:
These options can be simplified to either a positive assurance (unqualified or qualified) when the financial statements are presented fairly, to some extent; a negative assurance (adverse opinion) when the financial statements are not presented fairly; or an indeterminate assurance (disclaimer of opinion) when the auditor cannot form an opinion.The question does not provide specific options labeled as 'I' or 'II', so the scenario given cannot be directly mapped to the categories above. Nevertheless, the forms in which an audit report can be issued include both positive assurance (unqualified or qualified) and negative or indeterminate assurance (adverse opinion or disclaimer).