In which one of the following instances would an auditor most likely issue an unqualified opinion without explanatory language?
A)Management's disclosures are missing or inadequate.
B)There is substantial doubt about the entity's ability to continue as a going concern.
C)There is a significant limitation on the scope of the engagement.
D)There is an immaterial deviation from GAAP related to capitalizing repairs.

Question

Quizplus · Accepted Answer

An unqualified opinion without explanatory language is issued when the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in accordance with GAAP. A deviation from GAAP that is immaterial does not affect the fairness of the financial statements and therefore would not require an explanatory paragraph in the audit report.

In Which One of the Following Instances Would an Auditor