Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 25

An auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported on had significant transactions with related parties. The inclusion of this separate paragraph a. Is considered a qualification of the opinion.
B) Violates generally accepted auditing standards if this information is already disclosed in notes to the financial statements.
C) Necessitates a revision of the opinion paragraph to include the phrase, "with the foregoing explanation."
D) Is appropriate and would not negate the unqualified opinion.