Which of the following audit opinions is issued when a government fails to comply with generally accepted accounting principles?
A) Qualified
B) Adverse
C) Either of the above, depending on the severity of the noncompliance
D) Neither a) or b) above

Question

Quizplus · Accepted Answer

A qualified opinion may result from either a limitation on the scope of the audit or failure to follow generally accepted accounting principles. The opinion states that, except for the effects of the matters to which the qualification relates, the financial statements are fairly presented. An adverse opinion issued when the auditor believes that the financial statements are so materially misstated or misleading that they do not present fairly the financial position and results of operations and cash flows, if applicable) in accordance with GAAP.

Which of the Following Audit Opinions Is Issued When a Government