2. Which of the following is not true about an audit report?

a. An explanatory paragraph may be included to draw the readers attention to some aspect of

the financial statements.

b. If a material misstatement exists in the financial statements, the auditor should not issue an

unqualified opinion.

c. The report is addressed to the companys board of directors and shareholders.

d. If anything other than unqualified opinion is issued, the financial statements must contain a

material misstatement.