Which of the following correctly identifies the four audit opinions described in the material?

• A. Modified, Qualified, Adverse, and Disclaimer
• B. Modified, Qualified, Adverse, and Unmodified
• C. Qualified, Adverse, Disclaimer, and Unmodified
• D. Modified, Adverse, Disclaimer, and Unmodified

Answer: (A)

Auditors describe their opinion on financial statements using four main terms: modified, qualified, adverse, and disclaimer. Modified serves as an umbrella for situations where the statements aren’t free from misstatements or scope limitations, and within that umbrella there are three specific forms: qualified, which means the statements are fairly presented except for a specific issue; adverse, which means the statements are not fairly presented; and disclaimer, which means the auditor cannot obtain enough evidence to form an opinion. The standard clean opinion (often called unmodified or unqualified) isn’t counted among these four because it represents the normal, no-issue conclusion. The option that lists exactly these four terms matches the material.