Which of the following is the most likely reason for an auditor to issue a modified opinion with a qualification?
A) Inability to gather any sufficient relevant information to form the basis for the opinion
B) Misstatements that are material and pervasive
C) Going concern issue
D) Misstatements that are material but not pervasive

Question

Quizplus · Accepted Answer

A qualified opinion is issued when the auditor encounters one or more situations that do not comply with generally accepted accounting principles (GAAP), but these issues are not pervasive enough to necessitate a disclaimer of opinion or an adverse opinion. Misstatements that are material but not pervasive fall into this category, leading to a modified opinion with a qualification.

Which of the Following Is the Most Likely Reason for an Auditor