Final answer:
Regarding an audit report, the level of materiality determines which modified opinion should be issued, if any. Materiality affects the auditors' assessment of the significance of discrepancies and influences the type of opinion on the financial statements.
Step-by-step explanation:
With respect to the issuance of an audit report, the level of materiality will determine which modified opinion should be issued, if any. Materiality is a fundamental concept in auditing that refers to the significance of an amount, transaction, or discrepancy. The idea is that some matters, either individually or in the aggregate, are important enough to influence the economic decisions of users of the financial statements.
In auditing, opinions can be unmodified (or unqualified), which is a clean opinion, or modified. Modified opinions, which can be qualified, adverse, or a disclaimer, are used when there is a departure from generally accepted accounting principles (GAAP) or when there is a limitation on the scope of the audit.