Which of the following phrases would auditors most likely include in their report when expressing a qualified opinion on the entity's financial statements because of inadequate disclosure?
A)"Subject to the departure from generally accepted accounting principles,as described above".
B)"With the foregoing explanation of these omitted disclosures".
C)"Except for the omission of the information discussed in the preceding paragraph".
D)"Does not present fairly in all material respects".

Question

Quizplus · Accepted Answer

A qualified opinion is issued when there is a limitation or exception to the financial statements, such as inadequate disclosure. The phrase "Except for the omission of the information discussed in the preceding paragraph" is typically used to indicate the specific issue leading to the qualified opinion.

Which of the Following Phrases Would Auditors Most Likely Include