Final answer:
An unqualified opinion, also known as an unmodified opinion, is the term used by auditors to signify that financial statements conform to the financial reporting framework and are free from material misstatements.
Step-by-step explanation:
A unqualified opinion, also known as an unmodified opinion, is presented by the auditor to indicate that the financial statements are in accordance with the applicable financial reporting framework. This indicates that the auditor has concluded that the financial statements present a true and fair view of the organization's financial position.
When financial statements are free from material misstatements and are faithfully represented, the auditor grants an unqualified or unmodified opinion. In contrast, a modified opinion is presented when there is a deviation from the financial reporting framework, but the deviation is not pervasive.
An audit opinion is the general term that refers to the conclusion reached by the auditor, which can be unqualified, modified, or another type such as an adverse or disclaimer of opinion.