Answer:
Option A. The f/s are free from material misstatement and no disclosure is required in the financial notes
Step-by-step explanation:
The reason is that if the management refuses to adjust the financial statement according to the external auditor's proposed adjustments and these proposed adjustments are immaterial.
Then the auditor is required to publish an unqualified opinion as the financial statements are free from material misstatements.
Beside all these, the proposed adjustments must be delivered to the management under the name "Management Representation Letter" with the acknowledgement of the management which says that the proposed adjustments were individually and collectively immaterial. Furthermore, under International Standard on Auditing, the auditor is not required to address the issue under any notes to financial statement.