The independent auditors of Shadydells, Inc., have determined that the company recorded operating leases that should have been capitalized. This is considered to be a material instance of noncompliance with applicable GAAP, but the financial statements are otherwise fairly presented. Which opinion are the auditors most likely to issue?

Auditors issue a qualified opinion when there is a material instance of noncompliance with applicable accounting standards. An unqualified opinion means the auditors believe there is reasonable assurance that the financial statements are free of error and in compliance with applicable accounting standards. An adverse opinion is only issued when the auditors believe the financial statements as a whole are not fairly presented.