Question

What is an unqualified audit report?

a. A report stating that the auditors are not qualified to report on a firm.
b. A report that states the financial statements are in violation of GAAP.
c. A report that states that departures from GAAP exist in the firm's financial statements.
d. A report that states the financial statements are presented fairly, in all material respects, and are in conformity with GAAP.

Answer 1

An unqualified audit report is a report that states the financial statements are presented fairly, in all material respects, and are in conformity with GAAP.

Step-by-step explanation:

An unqualified audit report is a report that states the financial statements are presented fairly, in all material respects, and are in conformity with GAAP.

This means that the auditors have found no departures from GAAP and have no concerns about the accuracy or completeness of the financial statements.

Therefore, option d is the correct answer.