Which of the following modifications of the auditor's report does not include an explanatory paragraph?
A) A qualified report due to a GAAP departure.
B) The report includes an emphasis of a matter.
C) There is a very material scope limitation.
D) A principle auditor accepts the work of an other auditor.

Question

Quizplus · Accepted Answer

When a principal auditor accepts the work of another auditor, there is no need for an explanatory paragraph. However, in all the other situations mentioned (GAAP departure, emphasis of matter, and scope limitations), an explanatory paragraph is required.

Which of the Following Modifications of the Auditor's Report Does