Violations of accounting standards resulting in qualified opinions affect the standard audit report by:
A) modifying the scope paragraph
B) adding an explanatory paragraph before the opinion paragraph
C) modifying the opinion paragraph to read 'except for'
D) both B and C

Question

Quizplus · Accepted Answer

Violations of accounting standards that lead to qualified opinions typically result in the addition of an explanatory paragraph before the opinion paragraph to detail the reasons for the qualification, and the modification of the opinion paragraph to include the phrase 'except for' to indicate the specific area of the financial statements where the auditors have reservations.

Violations of Accounting Standards Resulting in Qualified Opinions Affect the Standard