The least severe type of report for disclosing departures from an unqualified report is the
A) adverse opinion.
B) disclaimer of opinion.
C) qualified opinion.
D) report on unaudited financial statements.

Question

Quizplus · Accepted Answer

The least severe type of report for disclosing departures from an unqualified report is the qualified opinion. This type of report indicates that the financial statements have some material departures from Generally Accepted Accounting Principles (GAAP), but not to the extent that the financial statements are materially misstated. An adverse opinion indicates that the financial statements are materially misstated, while a disclaimer of opinion indicates that the auditor was unable to obtain sufficient audit evidence to form an opinion on the financial statements. A report on unaudited financial statements is not a type of report for disclosing departures from an unqualified report, as it is not based on an audit.

The Least Severe Type of Report for Disclosing Departures from an Unqualified