What is an unqualified audit report?
A)A report stating that the auditors are not qualified to report on a firm.
B)A report that states the financial statements are in violation of GAAP.
C)A report that states that departures from GAAP exist in the firm's financial statements.
D)A report that states the financial statements are presented fairly, in all material respects, and are in conformity with GAAP.

Question

Quizplus · Accepted Answer

An unqualified audit report is a report that states the financial statements are presented fairly, in all material respects, and are in conformity with Generally Accepted Accounting Principles (GAAP). It is the best possible outcome for a company's audit report, indicating that no significant issues were found during the audit. Choices A, B, and C represent qualified audit reports, where the auditor has found issues with the financial statements.

What Is an Unqualified Audit Report