When an auditor expresses an unqualified audit opinion, it means the
A) entity has complied with the reporting obligations as required by CPAB.
B) internal controls of the entity are operating efficiently and effectively.
C) financial statements are accurate in all respects.
D) financial statements have been prepared in accordance with an applicable accounting framework.

Question

Quizplus · Accepted Answer

When an auditor expresses an unqualified audit opinion, it means that the financial statements have been prepared in accordance with an applicable accounting framework. This opinion is given when there is no material misstatement in the financial statements and they fairly represent the financial position of the entity. It does not speak to the entity's compliance with reporting obligations or the effectiveness of internal controls.

When an Auditor Expresses an Unqualified Audit Opinion, It Means