Which of the following is a reason for an auditor to issue a qualified opinion?
A)Difference of opinion with management on presentation of financial statements in the annual report
B)Difference of opinion with management on earnings estimate of a material amount
C)Difference of opinion with management on preferred accounting principles under GAAP
D)Difference of opinion with management on a material application of accounting standards

Question

Quizplus · Accepted Answer

A qualified opinion is issued when the auditor disagrees with management's application of accounting principles or when the auditor is unable to obtain sufficient evidence to support some aspect of the financial statements. Therefore, the only option among the given choices that fits this criteria is a difference of opinion with management on a material application of accounting standards.

Which of the Following Is a Reason for an Auditor