Auditors who are reporting on financial statements that contain a material departure from generally accepted accounting principles should
A)express a qualified or adverse opinion.
B)not modify the Opinion on the Financial Statements section of the report as long as the departure is adequately disclosed in a footnote.
C)disclaim an opinion on the financial statements.
D)express a qualified opinion or disclaimer of opinion.

Question

Quizplus · Accepted Answer

Auditors who are reporting on financial statements that contain a material departure from generally accepted accounting principles should express a qualified or adverse opinion. This is because a material departure from GAAP means that the financial statements are not showing a true and fair view of the company's financial position and performance, which is the primary objective of financial reporting. The auditor's opinion should reflect this deviation from GAAP to ensure that users of the financial statements are aware of the potential impact on their decision-making.

Auditors Who Are Reporting on Financial Statements That Contain a Material