If an entity's external auditor expresses an unmodified opinion as a result of the audit of the entity's financial report, readers of the auditor's report can assume that:
A)the entity is financially sound and the financial report is accurate.
B)the external auditor found no irregularities.
C)all material disagreements between the entity and the external auditor about the application of accounting principles were resolved to the satisfaction of the auditor.
D)the internal control structure is effective.

Question

Quizplus · Accepted Answer

An unmodified opinion indicates that any material disagreements regarding the application of accounting principles were resolved to the auditor's satisfaction, ensuring the financial statements are presented fairly in all material respects according to the applicable financial reporting framework. It does not guarantee the entity's financial soundness, the absence of any irregularities, or the effectiveness of internal controls.

If an Entity's External Auditor Expresses an Unmodified Opinion as a Result