When a qualified or adverse opinion is issued, the qualifying paragraph is inserted
A) between the introductory and scope paragraphs.
B) between the scope and opinion paragraphs.
C) after the opinion paragraph, as a fourth paragraph.
D) immediately after the address, as the first paragraph.

Question

Quizplus · Accepted Answer

The purpose of the qualifying paragraph is to explain the basis for the qualified or adverse opinion. It should be placed between the scope paragraph, which describes the nature and scope of the audit, and the opinion paragraph, which presents the auditor's overall conclusion. Placing the qualifying paragraph in any other location would disrupt the flow and logical presentation of the audit report.

When a Qualified or Adverse Opinion Is Issued, the Qualifying