When a circumstance-imposed scope limitation has a material but not pervasive effect on the sufficiency of the auditors' evidence, the auditors' report will
A)modify the Opinion on the Financial Statements section and Basis for Opinion section.
B)modify the Opinion on the Financial Statements section only.
C)modify the Basis for Opinion section only.
D)modify the Opinion on the Financial Statements section and notes to the financial statements.

Question

Quizplus · Accepted Answer

When there is a material but not pervasive scope limitation, auditors issue a qualified opinion, which requires modifications to both the Opinion on the Financial Statements section and the Basis for Opinion section to explain the limitation and its impact.

When a Circumstance-Imposed Scope Limitation Has a Material but Not