KMAKY is an accounting firm and has been hired to audit the books for Bike Spinners,Inc.While performing the audit,they find that although the company's financial statement fairly represents the company's position,the accounting methods the client used to arrive at the figures were not generally accepted in the accounting industry.KMAKY should provide the following opinion:

Question

Quizplus · Accepted Answer

KMAKY should issue a qualified opinion, noting the problematic accounting methods, because the financial statements fairly represent the company's position but the accounting methods used are not in accordance with generally accepted accounting principles (GAAP).

KMAKY Is an Accounting Firm and Has Been Hired to Audit