An auditor's opinion of:
A) "unqualified" indicates that there are major problems with the financial statements presented by management.
B) "unqualified" indicates that the independent auditors believe the financial statements presented by management are fairly presented.
C) "qualified" indicates that the independent auditors believe the financial statements presented by management meet the guidance of U.S. GAAP.
D) All of the choices are correct..

Question

Quizplus · Accepted Answer

An auditor's unqualified opinion means that they have reviewed the financial statements presented by management and believe that they are fairly presented in accordance with U.S. GAAP. A qualified opinion, on the other hand, indicates that there are some issues in the financial statements that signify non-compliance with U.S. GAAP. An adverse opinion states that the financial statements do not adhere to U.S. GAAP and are materially misstated. A disclaimer of opinion means that the auditor was unable to obtain enough evidentiary support to form an opinion on the financial statements.

An Auditor's Opinion Of