A common reason why a government might receive a "qualified opinion" from the external auditors is
A) A violation of generally accepted accounting principles 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) Liabilities exceed assets in the General Fund.

Question

Quizplus · Accepted Answer

A qualified opinion is given when the financial statements contain a departure from generally accepted accounting principles (GAAP) but the departure does not affect the overall fairness of the financial statements. Therefore, choice A is the only option that fits this category. The other choices either result in a disclaimer of opinion or adverse opinion.

A Common Reason Why a Government Might Receive a "Qualified