An auditor may be unable to express an unqualified opinion if an immaterial departure from GAAP is present in the financial statements.

Question

Quizplus · Accepted Answer

An auditor can only issue an unqualified opinion if the financial statements are presented fairly in accordance with GAAP. Any departure, even if immaterial, would require the auditor to assess the impact on the financial statements and consider if a qualification or disclaimer of opinion is necessary.

An Auditor May Be Unable to Express an Unqualified Opinion