Final answer:
The claim that all audits result in unmodified opinions is false, as there are several types of audit opinions including qualified, disclaimer, and adverse. The type of opinion affects the disclosures the auditors make in the financial statement notes.
Step-by-step explanation:
The statement that all audits result in unmodified (unqualified) opinions is false. An audit can result in different types of opinions. The unmodified opinion indicates that the financial statements are presented fairly in all material respects. However, an auditor can also issue a qualified opinion if there is a limitation on the scope of the audit or the financial statements contain a material misstatement that is not pervasive. A disclaimer of opinion can be issued when the auditor is unable to obtain sufficient appropriate audit evidence on which to base an opinion. Lastly, an adverse opinion is given when the financial statements contain a material misstatement that is both material and pervasive. Therefore, the auditor's disclosure in the financial statement notes can vary significantly based on the type of audit opinion issued.