Smiley,a CPA,was performing the audit at a client when he noticed that the client did not properly account for certain miscellaneous revenues.These revenues were a small portion of overall revenues,but were nonetheless material to the overall financial statements.What type of opinion should Smiley render on the financial statements?

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Smiley should render a qualified opinion because the client did not properly account for certain miscellaneous revenues, which are material to the overall financial statements. A qualified opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence or when there is a scope limitation, but the financial statements are not materially misstated except for specific items.

Smiley,a CPA,was Performing the Audit at a Client When He