Forming Conclusions and Reporting Flashcards
1
Q
Management does not provide reasonable justification for a change in accounting principles. What type of opinion should the auditor issue?
A
A QUALIFIED or ADVERSE topinion.
2
Q
What type of opinion is issued when a client’s financial statements depart from GAAP?
A
Adverse opinion
3
Q
A scope limitation leads to a binary opinion, the two of which are?
A
Qualified or Disclaimer of opinion
4
Q
True or False: A going concern issue can still warrant an unmodified opinion
A
TRUE
5
Q
True or False: The emphasis-of-matter paragraph follows the basis for opinion paragraph.
A
True
