The auditors' report on the entity's financial statements included an additional paragraph disclosing a difference of opinion between the auditors and the entity for which the auditors believed an adjustment to the financial statements should be made.The opinion paragraph of the auditors' report should express a(n)
A) unmodified opinion.
B) qualified opinion citing a departure from generally accepted accounting principles.
C) qualified opinion citing a scope limitation and lack of specific evidence.
D) disclaimer of opinion.

Question

Quizplus · Accepted Answer

The auditors' report includes an additional paragraph disclosing a difference of opinion between the auditors and the entity for which the auditors believed an adjustment to the financial statements should be made. This indicates that there is a departure from generally accepted accounting principles, which warrants a qualified opinion.

The Auditors' Report on the Entity's Financial Statements Included an Additional