Green,CPA,was engaged to audit the financial statements of Essex Corporation after its fiscal year had ended.The timing of Green's appointment as auditor and the start of field work made confirmation of accounts receivable by direct communication with the debtors impracticable.Green applied other procedures and was satisfied as to the reasonableness of the account balances.Green's auditor's report most likely contained a(n)________.
A)unqualified opinion with standard wording
B)unqualified opinion with an explanatory paragraph
C)qualified opinion due to a scope limitation
D)qualified opinion due to a departure from generally accepted auditing standards

Question

Quizplus · Accepted Answer

Since Green was satisfied with the reasonableness of the account balances despite not being able to confirm them directly, no scope limitation or departure from auditing standards occurred. Therefore, an unqualified opinion with standard wording is the most likely outcome.

Green,CPA,was Engaged to Audit the Financial Statements of Essex Corporation