Which of the following is not an area of disagreement with those charged with governance that may result in a modified audit opinion?
A) the acceptability of accounting policies selected
B) the terms of the audit engagement
C) the method of application of accounting policies
D) the adequacy of disclosures in the financial statements

Question

Quizplus · Accepted Answer

The terms of the audit engagement are agreed upon before the audit begins and any disagreements would be settled prior to the issuance of an audit opinion. The other options (A, C, and D) are areas where disagreements with those charged with governance could result in a modified audit opinion.

Which of the Following Is Not an Area of Disagreement