An auditor includes a separate paragraph in an otherwise unmodified financial statement audit report to emphasize that the entity being reported upon had significant transactions with related parties. The inclusion of this separate paragraph:
a. Is appropriate and would not negate the unmodified opinion.
b. Is considered an "except for" qualification of the opinion.
c. Violates generally accepted auditing standards if this information is already disclosed
in footnotes to the financial statements.
d. Necessitates a revision of the opinion paragraph to include the phrase "with the
foregoing explanation."

a. Is appropriate and would not negate the unmodified opinion.

Explanation:

An auditor is a professional who takes stocks and reviews an organization’s finance related issue.

The auditor prepares an unmodified financial statement audit report to emphasize that the entity being reported upon had significant transactions with related parties. This extra paragraph doesn’t alter the audit figures or report. It was used as a form of addendum to pass a message across.

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