An investor is reading the financial statements of the Stankey Corporation and observes that the statements are accompanied by an auditor's unqualified report.From this,the investor may conclude that
A) Any disputes over significant accounting issues have been settled to the auditor's satisfaction.
B) The auditor is satisfied that Stankey will be highly profitable in the future.
C) The auditor is certain that Stankey's financial statements have been prepared accurately and that all account balances are precisely correct.
D) The auditor has determined that Stankey's management is not qualified to lead the company.

Question

Quizplus · Accepted Answer

An unqualified auditor's report indicates that the financial statements have been prepared according to generally accepted accounting principles and that there are no disagreements over significant accounting issues between the company and the auditor. It does not provide any indication of future profitability or of the management's qualifications.

An Investor Is Reading the Financial Statements of the Stankey