The least severe type of report for disclosing departures from an unmodified report is the
A)adverse opinion.
B)disclaimer of opinion.
C)qualified opinion.
D)report on unaudited financial statements.

Question

Quizplus · Accepted Answer

The qualified opinion is the least severe type of report for disclosing departures from an unmodified report. This indicates that the financial statements contain no material misstatements, but there are specific items or issues that have been identified and disclosed in the report that affect the auditor's opinion. The adverse opinion and disclaimer of opinion are more severe types of reports, with the former indicating that the financial statements are materially misstated and the latter indicating that the auditor is unable to express an opinion on the financial statements. The report on unaudited financial statements is not applicable in this scenario, as it refers to a report on financial statements that have not been audited.

The Least Severe Type of Report for Disclosing Departures from an Unmodified