If the auditor believes that financial statements prepared on the entity's income tax basis are not suitably titled,the auditor should:
A)Issue a disclaimer of opinion.
B)Explain in the notes to the financial statements the terminology used.
C)Issue a compilation report.
D)Modify the auditor's report to disclose any reservations.

Question

Quizplus · Accepted Answer

The auditor should modify the auditor's report to disclose any reservations regarding the suitability of the title of the financial statements. This allows the auditor to communicate their concerns while still providing an opinion on the financial statements.

If the Auditor Believes That Financial Statements Prepared on the Entity's