An unqualified auditor's report is known as a clean report; which statement best describes it?

An unqualified auditor's report is known as a clean report; which statement best describes it?

• A. The report indicates deficiencies
• B. The report is issued when there are material misstatements
• C. The report notes the need for restatement
• D. The report is unqualified when the auditor is satisfied that the financial statements give a true and fair view and comply with the Companies Acts

Answer: (D)

An unqualified (clean) opinion means the auditor is satisfied that the financial statements present a true and fair view and comply with the Companies Acts and the applicable accounting framework. It indicates there are no material misstatements identified, no need for restatement, and no significant deficiencies requiring modification in the opinion. If statements had material misstatements, or there were deficiencies requiring adjustments, the auditor would issue a modified opinion (not unqualified). So the best description is that the report is unqualified when the auditor is confident the financial statements give a true and fair view and comply with the Companies Acts.

An unqualified (clean) opinion means the auditor is satisfied that the financial statements present a true and fair view and comply with the Companies Acts and the applicable accounting framework. It indicates there are no material misstatements identified, no need for restatement, and no significant deficiencies requiring modification in the opinion. If statements had material misstatements, or there were deficiencies requiring adjustments, the auditor would issue a modified opinion (not unqualified). So the best description is that the report is unqualified when the auditor is confident the financial statements give a true and fair view and comply with the Companies Acts.