When financial statements contain a departure from GAAP because of unusual circumstances and the statements would otherwise be misleading,the auditors should explain the unusual circumstances in a separate paragraph and express an opinion that is
A) Unqualified.
B) Qualified.
C) Adverse.
D) Qualified or adverse, depending on the overall materiality and pervasiveness of the GAAP departure.

Question

Quizplus · Accepted Answer

When financial statements contain a departure from GAAP due to unusual circumstances, auditors can issue an unqualified opinion if they believe the departure is justified and necessary to prevent the statements from being misleading. The auditors must explain the circumstances in a separate paragraph.

When Financial Statements Contain a Departure from GAAP Because of Unusual