If the auditor decides to draw attention to large related party transactions occurring in the financial statements of the client,which report will most likely be issued?
A)Qualified opinion.
B)Unqualified opinion with an explanatory paragraph.
C)Adverse opinion.
D)Consolidated opinion.

Question

Quizplus · Accepted Answer

An unqualified opinion with an explanatory paragraph is typically issued when there is a concern or issue with the financial statements, but it is not significant enough to warrant a qualified or adverse opinion. Drawing attention to large related party transactions would fall under this category.

If the Auditor Decides to Draw Attention to Large Related