In which of the following circumstances may auditors issue the standard (unmodified) report on the entity's financial statements?
a. the entity changed accounting principles having an immaterial effect on the entity's financial position, results of operations, and cash flows. b. the auditors wish to emphasize a matter regarding the financial statements. c. the auditors reference component auditors who examined a subsidiary of group financial statements. d. the auditors have not been able to audit a substantial portion of the balance sheet because of a circumstance-imposed scope limitation.

The entity changed accounting principles having an immaterial effect on the entity's financial position, results of operations, and cash flows.

Explanation:

Although it is common for any financial statement that is prepared according to the general purpose framework to clearly present in it  the financial position, cash flows, and results of operations of an organization, however, auditors are expected to issue standard (unmodified) report if the organization's changed accounting principle does not have any significant impact on the financial position, results of operations, and cash flows.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

you can put this in your 11 sentence summary

" most of the money would be invested in innovation, economic convergence."