A justified departure from GAAP may result in which of the following?
A) A disclaimer of an audit opinion.
B) An adverse opinion.
C) An unqualified audit opinion with an explanatory paragraph before the opinion paragraph or a qualified opinion.
D) A standard unqualified opinion.

Question

Quizplus · Accepted Answer

If a justified departure from GAAP is made, the auditor can issue an unqualified opinion with explanatory paragraph or a qualified opinion. This would depend on the materiality of the departure and its impact on the financial statements. A disclaimer or adverse opinion would only be issued if there was a material misstatement in the financial statements that could not be adequately explained or corrected.

A Justified Departure from GAAP May Result in Which of the Following