Three of the following conditions would,by themselves,require the auditor to issue a report other than an unmodified report.Which condition would permit an unmodified report?
A)The financial statements show a significant net loss for each of the last three years,including the current fiscal period.
B)The financial statements have not been prepared in accordance with an acceptable financial reporting framework and are misleading.
C)The auditor is not independent during the fiscal period under audit.
D)The scope of the auditor's examination has been restricted,although the cause of the restriction was not the client's fault.

Question

Quizplus · Accepted Answer

A significant net loss for several years does not necessarily indicate a problem with the financial statements' accuracy or the need for a modified audit report. It reflects the company's financial performance, not the quality of the financial reporting.

Three of the Following Conditions Would,by Themselves,require the Auditor to Issue