Question: An auditor most likely would modify an unqualified opinion if the entitys financial statements include a footnote on related-party transactions a. Disclosing loans to related

An auditor most likely would modify an unqualified opinion if the entity’s financial statements include a footnote on related-party transactions

a. Disclosing loans to related parties at interest rates significantly below prevailing market rates.

b. Describing an exchange of real estate for similar property in a nonmonetary related-party transaction.

c. Stating that a particular related-party transaction occurred on terms equivalent to those that would have prevailed in an arm’s-length transaction.

d. Presenting the dollar volume of related-party transactions and the effects of any change in the method of establishing terms from prior periods.

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