Question

Which of the following statements best describes what is meant by an unqualified audit opinion?

a. Issuance of an unqualified auditor’s report indicates that in the auditor’s opinion the client’s financial statements are not fairly enough presented in accordance with agreed-upon criteria to qualify for a clean opinion.
b. Issuance of an unqualified auditor’s report indicates that the auditor is not qualified to express an opinion that the client’s financial statements are fairly presented in accordance with agreed-upon criteria.
c. Issuance of an unqualified auditor’s report indicates that the auditor is expressing different opinions on each of the basic financial statements regarding whether the client’s financial statements are fairly presented in accordance with agreedupon criteria.
d. Issuance of a standard unqualified auditor’s report indicates that in the auditor’s opinion the client’s financial statements are fairly presented in accordance with agreed-upon criteria, with no need for the inclusion of qualifying phrases.

Answer 1

An unqualified audit opinion indicates that the client's financial statements are fairly presented in accordance with agreed-upon criteria, without any need for the inclusion of qualifying phrases.

Step-by-step explanation:

An unqualified audit opinion is an opinion given by an auditor indicating that the client's financial statements are fairly presented in accordance with agreed-upon criteria, without any need for the inclusion of qualifying phrases. This means that the auditor has reviewed the financial statements and found them to be accurate and reliable, following all required accounting standards. The issuance of an unqualified auditor's report provides assurance to the users of the financial statements that they can rely on the information presented.

For example, if a company receives an unqualified audit opinion, it means that the auditor has concluded that the company's financial statements provide a true and fair view of its financial position, performance, and cash flow. This opinion is based on the auditor's examination and evaluation of the company's internal controls, financial records, and supporting evidence.

Therefore, option d. is the correct statement. It accurately describes that an unqualified audit opinion indicates that the client's financial statements are fairly presented in accordance with agreed-upon criteria, without the need for any qualifying phrases.