An entity is a defendant in a lawsuit alleging infringement of certain patent rights. However, management. cannot reasonably estimate the ultimate outcome of the litigation. The auditor believes that there is a reasonable possibility of a significant material loss, but the lawsuit is adequately disclosed in the notes to the Financial statements

a)

A) Qualified

B) Unqualified

C) Adverse

D) Either qualified or adverse

b) Any modification report needed or not.? Please give the explination