In: Accounting
Which of the following is not one of the five situations in which an auditor may choose to issue an unqualified audit report with explanatory language?
Select one:
a. inconsistent application of GAAP
b. reference to other auditors
c. a justified departure from GAAP
d. lack of independence by the auditor
d. lack of independence by the auditor
There are five situations in which an auditor may choose to issue an unqualified audit report with explanatory language. Explanatory language would be used to explain the following:
A justified departure from GAAP
Inconsistent application of GAAP
Substantial doubt about the client being a going concern
The emphasis of some matter, such as unusually important subsequent events, risks, or uncertainties associated with contingencies or significant estimates
Reference to other auditors