In which one of the following cases would an auditor most likely issue a qualified opinion?
A) There is a highly material, and very pervasive departure from SFAS No. 141 and No. 142.
B) There is a change in accounting principles promulgated by the FASB.
C) There is an immaterial dollar misstatement on the financial statements.
D) There is one material departure from GAAP that is affects only two accounts.

Question

Quizplus · Accepted Answer

A qualified opinion may be issued when there is a material departure from GAAP, but not so significant that it affects the entire financial statement. In this case, the departure is material but limited to only two accounts, making a qualified opinion appropriate. The other options do not necessarily warrant a qualified opinion as they either involve immaterial misstatements or changes in accounting principles.

In Which One of the Following Cases Would an Auditor