According to the AICPA principles, which of the following is incorrect?
A) If the auditor has reservations about the fairness of financial statement presentation, the reason(s) must be stated in the auditor's report.
B) If there is a material departure from GAAP in the financial statements, the auditor should explicitly state the nature of the departure and the dollar effects where determinable.
C) Auditors should state the reasons why an unqualified opinion cannot be issued.
D) Auditors should issue an unqualified opinion in all cases where companies have provided an entire set of financial statements and footnotes that include all years presented for comparative purposes.

Question

Quizplus · Accepted Answer

This statement is incorrect because there may be situations where the auditor cannot issue an unqualified opinion, such as when there is a scope limitation or a material departure from GAAP. In such cases, the auditor should explain the reasons why a qualified or adverse opinion is necessary in the auditor's report. Therefore, option D is incorrect according to the AICPA principles. The other options are correct. The auditor must state the reasons for reservations about the fairness of financial statements, material departures from GAAP, and why an unqualified opinion cannot be issued.

According to the AICPA Principles, Which of the Following Is