The external auditor renders an 'except for' opinion when s/he:
A) is unable to express an opinion either way because of a limitation in the work s/he was able to do.
B) considers that the financial statements are not presented fairly in accordance with GAAP.
C) is generally satisfied except for a specified departure from GAAP in the statements.
D) is unable to obtain sufficient reliable audit evidence.

Question

Quizplus · Accepted Answer

An 'except for' opinion is rendered when the auditor is generally satisfied with the financial statements except for a specified departure from GAAP. This means that the financial statements are presented fairly, but there is a specific issue that the auditor has identified which departs from GAAP. This is different from an unqualified opinion, where the auditor expresses no reservations about the financial statements in any way.

The External Auditor Renders an 'Except For' Opinion When S/he