What does an unmodified opinion indicate about financial statements?

An unmodified opinion indicates that the financial statements are presented fairly, in all material respects, and comply with the applicable accounting framework. This type of opinion suggests that the auditor has found no significant issues or exceptions to report regarding the financial statements. An unmodified opinion conveys a high level of assurance to users of the financial statements, confirming that the financial information is reliable and accurately reflects the entity's financial position and performance.

The other options imply various levels of inaccuracy or non-compliance with accounting standards. However, an unmodified opinion specifically confirms the opposite: that the financial statements are not only accurate but also adhere to the relevant accounting principles. This provides confidence to stakeholders, investors, and creditors who rely on these statements for decision-making.