Harris is auditing the financial statements of Cole Corp., an energy company. The FASB requires that these financial statements must be accompanied by supplementary mineral reserve information. If this required information is materially misstated, what type of report should Harris issue?
A)Unqualified opinion on the financial statements with an explanatory paragraph disclaiming an opinion on the mineral reserve information, but noting the misstatement.
B)Adverse opinion on the financial statements and mineral reserve information due to the misstatement.
C)Unqualified opinion on the financial statements with an explanatory paragraph expressing a qualified or adverse opinion on the mineral reserve information.
D)Qualified opinion on the financial statements and mineral reserve information due to the misstatement.

Question

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The Answer of Harris is auditing the financial statements of Cole Corp., an energy company. The FASB requires that these financial statements must be accompanied by supplementary mineral reserve information. If this required information is materially misstated, what type of report should Harris issue?
A)Unqualified opinion on the financial statements with an explanatory paragraph disclaiming an opinion on the mineral reserve information, but noting the misstatement.
B)Adverse opinion on the financial statements and mineral reserve information due to the misstatement.
C)Unqualified opinion on the financial statements with an explanatory paragraph expressing a qualified or adverse opinion on the mineral reserve information.
D)Qualified opinion on the financial statements and mineral reserve information due to the misstatement.

Harris Is Auditing the Financial Statements of Cole Corp