More than one modification should be included in the audit report when
A) the auditor is not independent and the auditor knows that the company has not followed generally accepted accounting principles.
B) there is substantial doubt about the going concern of the company and information about the causes of the uncertainties is not adequately disclosed in the footnotes.
C) there is a scope limitation and there is substantial doubt about the company's ability to continue as a going concern.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the above situations require multiple modifications to be included in the audit report. If the auditor is not independent and the company has not followed generally accepted accounting principles, both a disclaimer of opinion and an emphasis of matter paragraph should be included in the report. If there is substantial doubt about the going concern of the company and information about the causes of the uncertainties is not adequately disclosed in the footnotes, both a qualified opinion and an emphasis of matter paragraph should be included in the report. Finally, if there is a scope limitation and there is substantial doubt about the company's ability to continue as a going concern, both a disclaimer of opinion and an emphasis of matter paragraph should be included in the report.

More Than One Modification Should Be Included in the Audit