What can a user of financial statements infer from an unqualified opinion on the financial statements?
A)The auditor found no instances of error or fraud.
B)The auditor has no reservations about the fairness of presentation.
C)The auditor is satisfied that management is both credible and competent.
D)All of the above can be inferred by the user.

Question

Quizplus · Accepted Answer

An unqualified opinion indicates that the auditor believes the financial statements give a true and fair view in accordance with the financial reporting framework used for the preparation and presentation of the financial statements. It does not specifically address the auditor's assessment of management's credibility or the absolute absence of errors or fraud, but rather the fairness of the financial statements' presentation.

What Can a User of Financial Statements Infer from an Unqualified