An auditor decided to issue a qualified opinion on an entity's financial statements because a major inadequacy in its computerized accounting records prevented the auditor from applying necessary procedures.The opinion paragraph of the auditor's report should state that the qualification pertains to ________.
A)a GAAP departure
B)a departure from generally accepted auditing standards
C)the possible effect of the lack of audit evidence on the financial statements
D)inadequate disclosure of necessary information

Question

Quizplus · Accepted Answer

The wording of the question suggests that the major inadequacy in the entity's computerized accounting records prevented the auditor from obtaining sufficient audit evidence to support the financial statements. Therefore, the qualification pertains to the possible effect of the lack of audit evidence on the financial statements. It is not a GAAP departure, a departure from generally accepted auditing standards, or inadequate disclosure of necessary information that led to the qualified opinion.

An Auditor Decided to Issue a Qualified Opinion on an Entity's