Which reporting options do auditors have if the client's financial statements are not presented according to the applicable financial framework (e.g., GAAP, IFRS)?
A)Unmodified opinion or disclaimer of opinion.
B)Qualified opinion or disclaimer of opinion.
C)Unmodified opinion or adverse opinion.
D)Qualified opinion or adverse opinion.

Question

Quizplus · Accepted Answer

If the client's financial statements are not presented according to the applicable financial framework, the auditor should issue a qualified opinion or an adverse opinion depending on the materiality and pervasiveness of the departure from the financial reporting framework. A qualified opinion is issued when the departure is material but not pervasive, while an adverse opinion is issued when the departure is both material and pervasive. An unmodified opinion or disclaimer of opinion is not an option in this scenario because the financial statements do not conform to the applicable financial framework.

Which Reporting Options Do Auditors Have If the Client's Financial