When the financial statements do not contain a footnote the auditor believes is necessary for fair presentation,the failure to include the footnote is considered to be
A)a scope limitation.
B)an uncertainty.
C)a departure from GAAP.
D)an act discreditable.

Question

Quizplus · Accepted Answer

If a necessary footnote is not included in the financial statements, it is considered a departure from GAAP, as GAAP requires disclosure of all relevant information. However, it is not necessarily a scope limitation or an uncertainty, as the auditor has not been restricted in their work or unable to obtain sufficient evidence. It may also not necessarily be an act discreditable, as it depends on the circumstances and the materiality of the omission.

When the Financial Statements Do Not Contain a Footnote the Auditor