Final answer:
An unqualified/unmodified financial statement audit opinion is issued when financial statements are presented fairly with no material misstatements or uncertainties, and no scope limitations.
Step-by-step explanation:
An auditor would ordinarily issue an unqualified/unmodified financial statement audit opinion with no explanatory (or emphasis-of-matter/other-matter) paragraph only in situations where the financial statements are presented fairly in all material respects. This means that, after conducting the audit according to the applicable auditing standards, the auditor has concluded that the financial statements provide a true and fair view of the company's financial position and performance, without any significant misstatements or uncertainties. Situations that include material misstatements, significant uncertainties affecting the financial statements, or limitations on the scope of the audit do not qualify for an unqualified/unmodified opinion.
An auditor would issue an unqualified/unmodified financial statement audit opinion with no explanatory paragraph when the financial statements are presented fairly in all material respects. This means that the auditor has found no material misstatements or significant uncertainties that may affect the financial statements. It also indicates that there are no limitations on the scope of the audit.