When a financial report is presented that is not in conformity with accounting standards, an auditor may issue Qualified opinion Disclaimer of opinion
A)Yes Yes
B)Yes No
C)No No
D)No Yes

Question

Quizplus · Accepted Answer

A qualified opinion is issued when the financial report is mostly in conformity with accounting standards but there is a specific issue that the auditor disagrees with. A disclaimer of opinion is issued when the auditor is unable to express an opinion on the financial report due to lack of information or other limitations. Therefore, if the financial report is not in conformity with accounting standards, the auditor cannot issue a qualified opinion and must either issue a disclaimer of opinion or withdraw from the engagement altogether.

When a Financial Report Is Presented That Is Not in Conformity