When the financial statements contain a misstatement, the effect of which is mat

Question

When the financial statements contain a misstatement, the effect of which is material but not pervasive, the auditor should A. Disclaim an opinion and explain the effect of the misstatement in a disclaimer of opinion paragraph. B. Disclaim an opinion and describe the misstatement within the opinion paragraph. C. Qualify the opinion and include a basis for qualified opinion paragraph that describes the matter resulting in the qualification. D. Qualify the opinion and describe the misstatement within the opinion paragraph.

Explanation / Answer

Auditor Qualify the opinion if the auditor concludes that misstatements individually or in aggregrate are material but not pervasive to Financial statements.

The matter resulting in the qualification is described in the Basis for qualified opinion paragraph.

The answer is C.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.