When a misstatement in the financial statements exists but is unlikely to affect the decisions of a reasonable user,it would be appropriate to issue
A)an unmodified opinion.
B)a qualified opinion.
C)a disclaimer of opinion.
D)an adverse opinion.

Question

Quizplus · Accepted Answer

An unmodified opinion is appropriate when the misstatement in the financial statements is immaterial, or it is unlikely to influence the decisions of a reasonable user. In this situation, the financial statements fairly present the financial position, results of operations, and cash flows of the entity, and do not require any modifications or disclosures. Therefore, an unmodified opinion would be the best choice.

When a Misstatement in the Financial Statements Exists but Is