When financial statements are affected by a material departure from generally accepted accounting principles, the auditors...

When financial statements are affected by a material departure from generally accepted accounting principles, the auditors should:

A. Issue an "except for" qualification or a disclaimer of opinion.
B. Withdraw from the engagement.
C. Issue an unmodified opinion with a basis for modification paragraph.
D. Issue an "except for" qualification or an adverse opinion.

Expert Solution

Correct answer:

Option(D) is correct answer that is the auditors should issue an "except for" qualification or an adverse opinion because this statement is be affected by a material departure from generally accepted accounting principles.

Incorrect answers:

Option (A) is an incorrect statement that the auditors should issue an "except for" qualification or a disclaimer of opinion,because it is not affected by a material departure from generally accepted accounting principles.

Option (B) is an incorrect statement that the auditors should withdraw from the engagement and it is not affected by a material departure from generally accepted accounting principles.

Option (C) is an incorrect statement that the auditors should issue an unmodified opinion with a basis for modification paragraph.It is not affected by a material departure from generally accepted accounting principles.

So correct answer is option (D)

ekkarill92 answered 1 year ago

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