Three of the following conditions would, by themselves, require the auditor to issue a report other than an unqualified report. Which condition would permit a standard unqualified report?
A) The financial statements show a significant net loss for each of the last three years, including the current fiscal period.
B) The financial statements have not been prepared in accordance with an acceptable financial reporting framework and are misleading.
C) The auditor is not independent during the fiscal period under audit.
D) The scope of the auditor's examination has been restricted, although the cause of the restriction was not the client's fault.

Question

Quizplus · Accepted Answer

A significant net loss does not necessarily affect the fairness of the financial statements or the auditor's ability to issue an unqualified report, as long as the financial statements are prepared in accordance with the applicable financial reporting framework and the auditor is independent.

Three of the Following Conditions Would, by Themselves, Require the Auditor