A company accomplished an early extinguishment of debt, and the auditors believe that recognition of a huge loss distorts the financial statements and causes them to be misleading. The auditors’ reporting choices are to

a. Explain the situation and give an adverse opinion.

b. Explain the situation and give a disclaimer of opinion.

c. Explain the situation and give an unqualified opinion, relying on rules of professional conduct not to be associated with misleading financial statements.

d. Give the standard unqualified audit report.