When financial statements contain a departure from GAAP,the auditors should explain the unusual circumstances in a separate paragraph and express an opinion that is
A)Unmodified.
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, the auditor should explain the unusual circumstances in a separate paragraph and express an opinion that is qualified or adverse, depending on the overall materiality and pervasiveness of the GAAP departure. Therefore, option D is the best choice.

When Financial Statements Contain a Departure from GAAP,the Auditors Should