Items that materially affect the comparability of financial statements generally require disclosure in the footnotes. If the client refuses to properly disclose the item, the auditor will most likely issue:
Which of the following scenarios doesnotresult in a qualified opinion?Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a:In which of the following circumstances would an auditor most likely express an adverse opinion?The most common case in which conditions beyond the client's and auditor's control cause a scope restriction in an engagement is when the:When the client fails to make adequate disclosure in the body of the statements or in the related footnotes, it is the responsibility of the auditor to:A qualified audit report is issued when all auditing conditions have been met, no significant misstatements have been discovered, and it is the auditor's opinion that the financial statements are fairly stated in accordance with GAAP.Auditors should issue a disclaimer of opinion when there is a highly material client-imposed scope restriction.
A qualified report can take the form of a qualification of both the scope and the opinion orof the opinion alone.When an auditor discovers a highly material GAAP violation in the financial statements and the client refuses to correct it, the auditor should issue a disclaimer of opinion.Client imposed restrictions on the audit always require a disclaimer of opinion.An auditor should issue a qualified opinion with an explanatory paragraph whenever thereis a material uncertainty affecting the financial statements.A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of: