The auditors' report on the entity's financial statements included language disclosing a difference of opinion between the auditors and the entity for which the auditors believed an adjustment to the financial statements should be made. The Opinion Section of the auditors' report should express a(n)
A)unmodified opinion.
B)qualified opinion citing a departure from generally accepted accounting principles.
C)qualified opinion citing a scope limitation and lack of specific evidence.
D)disclaimer of opinion.

Question

Quizplus · Accepted Answer

A qualified opinion citing a departure from generally accepted accounting principles is appropriate when auditors believe an adjustment should be made to the financial statements due to a disagreement with the entity, indicating that the financial statements may not be fully in accordance with GAAP.

The Auditors' Report on the Entity's Financial Statements Included Language