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) Unqualified 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

A difference of opinion between the auditors and the entity regarding a necessary adjustment to the financial statements means that the auditors cannot express an unqualified opinion, as they believe there is a departure from generally accepted accounting principles. Therefore, the auditors' report should include a qualified opinion citing this departure.

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