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

Question

Quizplus · Accepted Answer

When there is a justified departure from GAAP that is considered material, the auditor should issue an unqualified audit report with an explanatory paragraph to explain the departure and its impact on the financial statements. This allows the users of the financial statements to understand the reasons for the departure from GAAP and the impact on the financial statements, while still providing assurance on the overall fairness of the financial statements.

When There Is a Justified Departure from GAAP Which Is