The auditor makes the decision about which of the modifications is appropriate based on
A)the conclusiveness of the matter causing the modification,that is,whether the financial statements are materially misstated or whether the auditor is unable to gather sufficient appropriate evidence
B)the subject of the matter causing the modification on the financial statements
C)the pervasiveness of the matter causing the modification on the financial statements
D)the nature of the matter causing the modification,that is,whether the financial statements are materially misstated or whether the auditor is unable to gather sufficient appropriate evidence
E)the persuasiveness of the matter causing the modification that is,whether the financial statements are materially misstated or whether the auditor is unable to gather sufficient appropriate evidence
F)both A and B
G)both B and E
H)Both C and D

Question

Quizplus · Accepted Answer

The auditor makes the decision about which of the modifications is appropriate based on both the pervasiveness of the matter causing the modification on the financial statements (choice C) and the nature of the matter causing the modification, that is whether the financial statements are materially misstated or whether the auditor is unable to gather sufficient appropriate evidence (choice D). The other options do not fully capture the factors that the auditor takes into consideration when making the decision.

The Auditor Makes the Decision About Which of the Modifications