An auditor most likely modifies the opinion if the entity's financial statements include a note on related party transactions

A. Disclosing loans to related parties at interest rates significantly below prevailing market rates.
B. Describing an exchange of real estate for similar property in a nonmonetary related party transaction.
C. Stating without substantiation that a particular related party transaction occurred on terms equivalent to those that would have prevailed in an arm's-length transaction.
D. Presenting the dollar volume of related party transactions and the effects of any change from prior periods in the method of establishing terms.

Ans: C. Stating without substantiation that a particular related party transaction occurred on terms equivalent to those that would have prevailed in an arm's-length transaction.