Joshua Hanson knew that his clients financial statements were misstated but the misstatement was not pervasive. What kind of audit report was he considering?
A) qualified opinion
B) emphasis of matter
C) compilation
D) none of the above

Question

Quizplus · Accepted Answer

Joshua Hanson is considering a qualified opinion as he has identified a misstatement in his client's financial statements, but he believes that the misstatement is not significant or pervasive enough to require a disclaimer of opinion or an adverse opinion. A qualified opinion allows Hanson to express an opinion with certain reservations or exceptions regarding specific aspects of the financial statements.

Joshua Hanson Knew That His Clients Financial Statements Were Misstated