If a misstatement is immaterial relative to the financial statements of the entity for the current period and is not expected to have a material effect in future periods, it is appropriate to issue
A) an unqualified opinion.
B) a qualified opinion.
C) an adverse opinion.
D) a disclaimer of opinion.

Question

Quizplus · Accepted Answer

An unqualified opinion is appropriate when a misstatement is immaterial relative to the financial statements of the entity for the current period and is not expected to have a material effect in future periods. This indicates that the financial statements fairly represent the financial position, results of operations, and cash flows of the entity in accordance with the applicable financial reporting framework.

If a Misstatement Is Immaterial Relative to the Financial Statements