An auditor who is reporting on financial statements that contain a material departure from generally accepted accounting principles should include a separate explanatory paragraph and ________.
A)express a qualified or adverse opinion
B)not modify the opinion paragraph as long as the departure is adequately disclosed in a footnote
C)deny an opinion on the financial statements
D)express a qualified opinion or deny an opinion

Question

Quizplus · Accepted Answer

The auditor should include a separate explanatory paragraph and express a qualified or adverse opinion when financial statements contain a material departure from generally accepted accounting principles. The auditor cannot modify the opinion paragraph and cannot give an unmodified or clean opinion. Denying an opinion is also an option, but it is more severe than expressing a qualified or adverse opinion.

An Auditor Who Is Reporting on Financial Statements That Contain