Grant Company's financial statements adequately disclose uncertainties that concern future events, the outcome of which are not susceptible of reasonable estimation. The auditor's report should include a (an):

Question

Quizplus · Accepted Answer

Choice "A" is correct. The auditor should issue an "unqualified opinion" when management adequately discloses future events, the outcome of which are not susceptible of reasonable estimation. No reference to the uncertainty need be made in the auditor's opinion. Choice "B" is incorrect. "Subject to" qualified opinions are not permitted. Choice "C" is incorrect. An "except for" qualified opinion would not be used as there is adequate disclosure and there are no scope limitations. Choice "D" is incorrect. An adverse opinion would not be used because the FS are presented "fairly" in conformity with GAAP.

Grant Company's Financial Statements Adequately Disclose Uncertainties That Concern Future