Question

AU-C 700 Forming an Opinion and Reporting on Financial Statements defines an unmodified opinion as the opinion expressed by the_______.

A) Internal auditor when the auditor concludes the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework
B) External auditor when the auditor concludes the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework
C) External auditor when the auditor concludes the financial statements are presented fairly, in all material and immaterial respects, in accordance with the applicable financial reporting framework
D) External auditor when the auditor concludes the financial statements are presented fairly, in all material respects, in accordance with the international financial reporting standards.

Answer 1

The correct option is B) External auditor when the auditor concludes the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.

An unmodified opinion is provided by an external auditor who concludes that the financial statements are fairly presented in all material respects according to the applicable financial reporting framework.

Step-by-step explanation:

AU-C 700 Forming an Opinion and Reporting on Financial Statements defines an unmodified opinion as the opinion expressed by the external auditor when the auditor concludes the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. Therefore, the correct answer to the question is:

B) External auditor when the auditor concludes the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.

An unmodified opinion indicates that the auditor has reviewed the financial statements and found them to be free of material misstatements, which means they are a true and fair representation of the company's financial position in line with the accepted accounting principles.