Which of the following modifications of the auditors' report does not include an additional paragraph?
A)The report is qualified because the financial statements contain a material departure from generally accepted accounting principles.
B)The report includes an emphasis of a matter.
C)The audit report of a nonpublic company indicates a division of responsibility between two CPA firms.
D)The report is qualified because the scope of the auditors' work was limited.

Question

Which of the following modifications of the auditors' report does not include an additional paragraph?
A)The report is qualified because the financial statements contain a material departure from generally accepted accounting principles.
B)The report includes an emphasis of a matter.
C)The audit report of a nonpublic company indicates a division of responsibility between two CPA firms.
D)The report is qualified because the scope of the auditors' work was limited.

Quizplus · Accepted Answer

When there is a division of responsibility between two CPA firms, the auditor's report is modified in the opinion paragraph, but it does not require an additional paragraph.

Which of the Following Modifications of the Auditors' Report Does