Unformatted text preview: n,
not for a qualified opinion.
An auditor concludes that a client's illegal act, which has a material effect on the financial statements, has
not been properly accounted for or disclosed. Depending on the materiality of the effect on the financial
statements, the auditor should express either a(an):
d. Adverse opinion or a disclaimer of opinion.
Qualified opinion or an adverse opinion.
Disclaimer of opinion or an unqualified opinion with a separate explanatory paragraph.
Unqualified opinion with a separate explanatory paragraph or a qualified opinion. CPA-02539
Choice "b" is correct. If the financial statements, including accompanying notes, fail to disclose
information that is required by generally accepted accounting principles, the auditor should express a
qualified or adverse opinion.
Choice "a" is incorrect. A disclaimer of opinion is not an appropriate report for inadequate disclosure or a
Choice "c" is incorrect. A disclaimer of opinion or an unqualified opinion with an exp...
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- Fall '12