A common reason why a government might receive a "modified opinion" from the external auditors is:
A) A violation of generally accepted accounting principles was noted that does not cause material misstatement of the financial statements.
B) A fund balance deficit in the General Fund.
C) Poor internal controls such that the accounting records could not be audited.
D) Expenditures exceeded appropriations in the General Fund.

Question

Quizplus · Accepted Answer

A "modified opinion" from external auditors often indicates that there were issues encountered during the audit that prevent the auditor from providing an unqualified (clean) opinion. Poor internal controls that result in the accounting records being unauditable can lead to a modified opinion because the auditors cannot obtain sufficient assurance about the financial statements' accuracy.

A Common Reason Why a Government Might Receive a "Modified