When there is a justified departure from GAAP which is considered material, the auditor should issue a(n)
A) standard unmodified opinion.
B) disclaimer of opinion.
C) unmodified opinion with an explanatory paragraph.
D) adverse opinion.

Question

Quizplus · Accepted Answer

When there is a justified departure from GAAP which is considered material, the auditor should issue an unmodified opinion with an explanatory paragraph. The explanatory paragraph should explain the nature of the departure, why it was necessary, and its financial effect.

When There Is a Justified Departure from GAAP Which Is