A key factor in determining which type of modified report to issue is _______.
A)objectivity
B)independence
C)materiality
D)existence

Question

Quizplus · Accepted Answer

Materiality is a key factor in determining the type of modified report to issue. If the misstatement in the financial statements is material, then the auditor can issue a qualified or adverse opinion. If the misstatement is not material, then an unmodified opinion can be issued. Objectivity and existence are important concepts in auditing but not relevant to determining the type of modified report. Independence is required for auditors but it is not a factor in determining the type of modified report to issue.

A Key Factor in Determining Which Type of Modified Report