Maggie Oh performed an audit of a client that had undergone flooding to its operations in St-Jean Sur Richelieu. The client was insured and was able to keep operating. However,
There was material damage to the client's warehouse and Maggie felt it would be appropriate
To inform the users of the financial statements of this fact in the audit report. This form of audit
Report is called
A) an adverse opinion.
B) unmodified opinion - emphasis of matter.
C) modified opinion.
D) disclaimer of opinion.

Question

Quizplus · Accepted Answer

An unmodified opinion with emphasis of matter is the appropriate choice. This type of report indicates that the financial statements present fairly in all material respects, but includes a paragraph drawing attention to a matter that is relevant to the understanding of the financial statements, such as the flooding that caused material damage to the warehouse in this case.

Maggie Oh Performed an Audit of a Client That Had