An auditing opinion that is an unqualified (clean) opinion indicates that the company's:
A) statements are presented in accordance with GAAP and that the financial statements are reliable.
B) statements are presented accordance with GAAP and can be sent to the Internal Revenue Service.
C) employees are all bonded (if required).
D) management is acting with the utmost responsibility and proper internal control is in place.

Question

Quizplus · Accepted Answer

An unqualified (clean) opinion means that the auditor is comfortable that the financial statements are presented fairly and accurately in accordance with generally accepted accounting principles (GAAP). This indicates that the financial statements are reliable for their intended purpose of providing useful and accurate information to users of the financial statements. The other options are not directly related to the auditing opinion.

An Auditing Opinion That Is an Unqualified (Clean) Opinion Indicates