Kent is auditing an entity's compliance with requirements governing a major federal financial assistance program in accordance with the Single Audit Act.Kent detected noncompliance with requirements that have a material effect on that program.Kent's report on compliance should express a(an):
A)Unqualified opinion with a separate explanatory paragraph.
B)Qualified opinion or an adverse opinion.
C)Adverse opinion or a disclaimer of opinion.
D)Limited assurance on the items tested.

Question

Quizplus · Accepted Answer

If there is noncompliance with requirements that have a material effect on the program, Kent's report on compliance should express a qualified opinion or an adverse opinion. A qualified opinion is used when the noncompliance is significant but not pervasive, while an adverse opinion is used when the noncompliance is pervasive and materially affects the entity's ability to comply with the requirements of the program.

Kent Is Auditing an Entity's Compliance with Requirements Governing a Major