When a company's financial statements contain a departure from GAAP with which the auditor concurs, the departure should be explained in:
A)the scope paragraph.
B)an explanatory paragraph that appears before the opinion paragraph.
C)the opinion paragraph.
D)an explanatory paragraph after the opinion paragraph.

Question

Quizplus · Accepted Answer

When an auditor concurs with a departure from GAAP, it is explained in an explanatory paragraph after the opinion paragraph to clarify the nature and justification of the departure.

When a Company's Financial Statements Contain a Departure from GAAP