Choice "C" is correct. An unmodified opinion states that the financial statements are presented fairly, in all material respects. Since the collective effect of the proposed adjustments is immaterial, an unmodified opinion should be expressed. In addition, footnote disclosure of proposed immaterial adjustments is not required.
Choice "a" is incorrect. The AICPA defines fair presentation as reflecting the underlying transactions of a company in a manner that represents the financial statements within a range of acceptable limits. Since the collective effect of the proposed adjustments is immaterial, the financial statements would be considered to conform to generally accepted accounting principles.
Choice "d" is incorrect. An unmodified opinion states that the financial statements are presented fairly, in all material respects. Since the collective effect of the proposed adjustments is immaterial, an unmodified opinion should be expressed.
Choice "b" is incorrect. The AICPA defines fair presentation as reflecting the underlying transactions of a company in a manner that represents the financial statements within a range of acceptable limits. Since the collective effect of the proposed adjustments is immaterial, the financial statements would be considered to conform to generally accepted accounting principles, and footnote disclosure of the proposed adjustments would not be required.