In which one of the following instances would an auditor most likely issue a standard unqualified opinion without explanatory language?
A) Management's disclosures are missing or inadequate.
B) There is substantial doubt about the entity's ability to continue as a going concern.
C) There is a significant limitation on the scope of the engagement.
D) There is an immaterial deviation from GAAP related to capitalizing repairs.

Question

Quizplus · Accepted Answer

A standard unqualified opinion without explanatory language is issued when there are no material misstatements and the financial statements are presented fairly in accordance with the applicable accounting framework. In this case, the immaterial deviation from GAAP related to capitalizing repairs would not affect the overall fairness of the financial statements and would not result in the need for explanatory language.

In Which One of the Following Instances Would an Auditor