If financial statements of a public company fail to disclose a material fact,the auditors may disclose the information in an additional paragraph added to the report and,depending upon materiality,issue either a qualified opinion or adverse opinion on the statements.

Question

Quizplus · Accepted Answer

This statement is true. If auditors find that financial statements of a public company do not disclose a material fact, they are required to add an additional paragraph to the report and may issue a qualified or adverse opinion on the statements depending on the materiality of the undisclosed information.

If Financial Statements of a Public Company Fail to Disclose