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Management believes, and the auditor is satisfied, that a pending lawsuit is reasonably possible to result in a material loss of $100,000. The lawsuit has

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Management believes, and the auditor is satisfied, that a pending lawsuit is reasonably possible to result in a material loss of $100,000. The lawsuit has been adequately disclosed in the notes to the financial statements; however, no loss amount has been accrued related to the pending lawsuit. If management does not make an accrual in the financial statements, the auditor should express a(n) : A. Qualified or adverse opinion. B. Qualified or disclaimer. C. Unmodified opinion with an emphasis-of-matter paragraph. D. Unmodified opinion. Management believes, and the auditor is satisfied, that a pending lawsuit is reasonably possible to result in a material loss of $100,000. The lawsuit has been adequately disclosed in the notes to the financial statements; however, no loss amount has been accrued related to the pending lawsuit. If management does not make an accrual in the financial statements, the auditor should express a(n) : A. Qualified or adverse opinion. B. Qualified or disclaimer. C. Unmodified opinion with an emphasis-of-matter paragraph. D. Unmodified opinion

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