Violations of GAAP resulting in qualified opinions affect the audit report through which of the following?
A)Modifying the auditor's responsibility paragraph.
B)Adding an explanatory paragraph.
C)Modifying the opinion paragraph to read "except for."
D)Both B and C.
E)All of the above.

Question

Quizplus · Accepted Answer

When there are violations of GAAP resulting in qualified opinions, the auditor needs to modify the opinion paragraph to read "except for" and also add an explanatory paragraph to provide further details. This is because the violations have an impact on the financial statements and can result in a lack of confidence in their accuracy. Additionally, the auditor's responsibility paragraph may also need to be modified to reflect the limitations of the audit due to the violations. Therefore, both options B and C are correct, and the best answer would be D, which includes both options.

Violations of GAAP Resulting in Qualified Opinions Affect the Audit