Angel Pty Ltd's financial report includes two balance sheets and profit and loss accounts. One set is drawn up in accordance with applicable accounting standards and the other set is drawn up without complying with one standard, which the directors consider makes the accounts misleading. The auditors concur. The audit report should, therefore, contain:
A) an adverse opinion.
B) an unmodified opinion with an emphasis of matter section.
C) a qualified opinion with an emphasis of matter section.
D) a disclaimer of opinion.

Question

Quizplus · Accepted Answer

The auditors agree with the directors that compliance with the standard would make the accounts misleading, so they would issue an unmodified opinion but include an emphasis of matter section to highlight the issue.

Angel Pty Ltd's Financial Report Includes Two Balance Sheets and Profit