Which term is an audit outcome indicating no issues found?

• A. Disclaimer (unable to complete, rare)
• B. Unmodified (clean)
• C. Qualified (modified)
• D. Adverse (modified)

Answer: (B)

Key idea: an audit opinion communicates whether the financial statements are presented fairly under the applicable accounting framework. When an auditor finds no material misstatements and no significant scope issues, the report uses an unmodified (clean) opinion, signaling that the statements conform to the standards and are free of material errors. This is the best fit here because it directly indicates “no issues found.”

A disclaimer would occur if the auditor cannot obtain sufficient evidence to form any opinion, often due to significant scope limitations or lack of access to records. A qualified opinion means that, except for specific areas, the statements are fairly presented, indicating some concerns. An adverse opinion states that the financial statements are not fairly presented due to pervasive misstatements, which is the opposite of

Key idea: an audit opinion communicates whether the financial statements are presented fairly under the applicable accounting framework. When an auditor finds no material misstatements and no significant scope issues, the report uses an unmodified (clean) opinion, signaling that the statements conform to the standards and are free of material errors. This is the best fit here because it directly indicates no issues found.

A disclaimer would occur if the auditor cannot obtain sufficient evidence to form any opinion, often due to significant scope limitations or lack of access to records. A qualified opinion means that, except for specific areas, the statements are fairly presented, indicating some concerns. An adverse opinion states that the financial statements are not fairly presented due to pervasive misstatements, which is the opposite of no issues found.