An investor reading the financial statements of The Fairbury Corporation observes that the statements are accompanied by an unmodified auditors' report. From this, the investor may conclude that: Multiple Choice The auditors have ascertained that Fairbury's financial statements are free from error. Any disputes over significant accounting issues have been settled to the auditors' satisfaction. The auditors are satisfied that Fairbury is operationally efficient. Informative disclosures in the financial statements but not necessarily in the footnotes are to be regarded as reasonably adequate.

When the statement that should go with the non-modified auditor report so for the investor it should conclude that the disclosure i.e. information should be in the financial statement but it is not important for the footnotes.

The following information should not be considered:

The auditor confirms that the financial statement does not contain any kind of error.
The disputes should be settled for the auditor's satisfaction.
When it is operationally efficient so the auditors are satisfied.

Therefore we can conclude that when the statement should go with the non-modified auditor report so for the investor it should conclude that the disclosure i.e. information should be in the financial statement but it is not important for the footnotes.

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