An auditor decided to issue a qualified opinion on an entity's financial statements because a major inadequacy in its computerized accounting records prevented the auditor from applying necessary procedures.The opinion paragraph of the auditor's report should state that the qualification pertains to
A)A GAAP departure.
B)A departure from generally accepted auditing standards.
C)The possible effect of the lack of audit evidence on the financial statements.
D)Inadequate disclosure of necessary information.

Question

Quizplus · Accepted Answer

The qualification is due to the possible effect of the lack of audit evidence on the financial statements, as the auditor could not apply necessary procedures due to inadequate records.

An Auditor Decided to Issue a Qualified Opinion on an Entity's