Question
The five types of reports that may be issued by auditors include: (A) An unmodified opinion (B) An except for qualified opinion (C) An unmodified
The five types of reports that may be issued by auditors include: |
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(A) | An unmodified opinion |
(B) | An "except for" qualified opinion |
(C) | An unmodified opinion with an emphasis of a matter paragraph |
(D) | An adverse opinion |
(E) | A disclaimer opinion |
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For each of the following situations indicate the letter(s) that corresponds to the appropriate type of auditors' report, both when the situation is "material" and when it is "material and pervasive." |
Situation |
| Material | Material and Pervasive |
a. | The financial statements contain a departure from generally accepted accounting principles. |
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b. | The financial statements reflect a change from one generally accounting principles to another generally accepted accounting principle. The auditor considers the new principle preferable to the previous one. |
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c. | The auditors wish to emphasize in the report a subsequent event described in the notes to the financial statements. |
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d. | The scope of the auditors' examination is restricted. |
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