The opinion paragraph of an independent auditor's report begins, "In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position..." This language states ________.
Click on the arrows to vote for the correct answer
A. B. C. D. E.A
These references do not constitute a disclaimer or a qualified or adverse opinion, therefore, the language refers to an unqualified opinion.
The language mentioned in the question, "In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position..." indicates an unqualified opinion.
An unqualified opinion, also known as a clean opinion, is the best possible outcome of an independent auditor's report. It is issued when the auditor determines that the financial statements being audited are free from material misstatements and are presented fairly in accordance with the applicable financial reporting framework. In other words, the auditor believes that the financial statements provide a true and accurate representation of the organization's financial position, results of operations, and cash flows.
The key phrase "present fairly, in all material respects" emphasizes that the financial statements are considered to be reliable and accurate, with no significant issues or misrepresentations that would impact a user's understanding of the financial information. The phrase "in all material respects" indicates that the auditor has thoroughly reviewed the financial statements and believes that any minor discrepancies or immaterial errors do not affect the overall fairness of the presentation.
Therefore, option A, "an unqualified opinion," is the correct answer.