An unmodified auditor's report is _______.
A)an indication that a firm is financially successful
B)an indicator that the firm's stock price may be about to drop
C)not an indication the company is successful financially, but rather an indication the company has followed accounting standards as dictated by the applicable financial reporting framework
D)an indication the company is successful financially, but not an indication the company has followed accounting standards as dictated by the applicable financial reporting framework

Question

Quizplus · Accepted Answer

An unmodified auditor's report is simply a statement from an independent auditor that the financial statements presented by a company are free from material misstatements and are in accordance with the applicable financial reporting framework. It does not provide an indication of the financial success or failure of the company, but rather ensures that the company has followed the appropriate accounting standards.

An Unmodified Auditor's Report Is _______