When a company's financial statements contain a departure from GAAP with which the auditor concurs, the departure should be explained in
A) the scope paragraph.
B) an introductory paragraph.
C) the opinion paragraph.
D) a separate paragraph.

Question

Quizplus · Accepted Answer

A separate paragraph should be used to explain the departure from GAAP in the financial statements. This helps to ensure that users of the financial statements are aware of the specific departure and can make informed decisions based on the information presented. It also separates the explanation from other information in the financial statements, making it easier for users to find and understand.

When a Company's Financial Statements Contain a Departure from GAAP