When a nonpublic audit client has omitted required supplementary information,the audit report should include a(n)?
A)Disclaimer of opinion.
B)Other-matter paragraph.
C)Qualified opinion.
D)Statement indicating that the financial statements should not be relied upon.

Question

Quizplus · Accepted Answer

If a nonpublic audit client omits required supplementary information, the auditor should include an other-matter paragraph in the audit report to describe the nature of the omission and the effect on the financial statements. This paragraph should be placed after the opinion paragraph but before the report's signature. A disclaimer of opinion would only be necessary if the auditor was unable to obtain sufficient evidence to form an opinion on the financial statements as a whole, while a qualified opinion would only be necessary if the omission materially affected the financial statements. A statement indicating that the financial statements should not be relied upon would be too extreme, as the rest of the financial statements are still audited and may be relied upon.

When a Nonpublic Audit Client Has Omitted Required Supplementary Information,the