What kind of report indicates that the auditors have reservations about the financial statements?

A qualified report indicates that the auditors have reservations about the financial statements. This type of report is issued when the auditors encounter specific issues during the audit that lead them to conclude that, except for these issues, the financial statements present a true and fair view.

This reflects a situation where there might be limitations in scope, disagreements with management regarding accounting treatment, or other concerns that do not fully meet the required auditing standards but are not severe enough to warrant an adverse opinion. Hence, the auditors express their reservations clearly without rejecting the overall reliability of the financial statements.

In contrast, an unqualified report signifies that the auditors found no significant issues, while a management attention report is focused on internal weaknesses or issues identified during the audit process, rather than expressing reservations about the financial statements themselves. The term "uncorrected report" is not a standard term used in auditing and therefore does not accurately represent a type of audit opinion. Thus, the correct identification of a qualified report is essential for understanding the implications of an auditor's findings.