Information in the chairman's address, accompanying the financial report in an entity's annual report, is inconsistent with information contained in the audited financial report.The entity refuses to alter the chairman's address.The appropriate auditor's report is:
A)an unmodified opinion with an Other Matter paragraph.
B)a qualified opinion.
C)an unmodified opinion.
D)an unmodified opinion with an Emphasis of Matter paragraph.

Question

Quizplus · Accepted Answer

The correct choice is an unmodified opinion with an Other Matter paragraph because the inconsistency is in a part of the document not covered by the audit (the chairman's address), but it's important to draw attention to this inconsistency to ensure the users of the financial report are aware of it. The auditor's opinion on the financial statements themselves remains unmodified because the inconsistency does not pertain to the financial statements that were audited.

Information in the Chairman's Address, Accompanying the Financial Report in an Entity's