When a clients financial statements contain a material departure from a CPA Canada Handbook Accounting Recommendation and

Question:

When a client’s financial statements contain a material departure from a CPA Canada Handbook Accounting Recommendation and the PA believes that disclosure is necessary to make the statements not misleading, the PA

a. Must qualify the audit report for a departure from GAAP.

b. Can explain why the departure is necessary, and then give an unqualified opinion paragraph in the audit report.

c. Must give an adverse audit report.

d. Can give the standard unqualified audit report with an unqualified opinion paragraph.

Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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