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 unqualified opinion.
B) a qualified opinion.
C) a disclaimer of opinion.
D) an adverse opinion.

Question

Quizplus · Accepted Answer

An unqualified opinion indicates that the financial statements are free from material misstatements and are presented fairly in accordance with the applicable financial reporting framework. In the given scenario, although a misstatement exists, it is not material enough to affect the decisions of a reasonable user of the financial statements. Hence, an unqualified opinion can be issued.

When a Misstatement in the Financial Statements Exists but Is