In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse opinion?
A) The auditor did not observe the entity's physical inventory and is unable to become satisfied as to its balance by other auditing procedures.
B) The financial statements fail to disclose information that is required by generally accepted accounting principles.
C) The auditor is asked to report only on the entity's balance sheet and not on the other basic financial statements.
D) Events disclosed in the financial statements cause the auditor to have substantial doubt about the entity's ability to continue as a going concern.

Question

Quizplus · Accepted Answer

When financial statements fail to disclose information required by GAAP, the auditor must decide between a qualified opinion ("except for") if the misstatement is material but not pervasive, or an adverse opinion if the misstatement is both material and pervasive.

In Which of the Following Situations Would an Auditor Ordinarily