Name the type of opinion indicated by each of the following situations: a. There is a...
Name the type of opinion indicated by each of the following situations:
a. There is a material uncertainty.
b. There was a change in accounting principle.
c. There is no material scope limitation or material departure from GAAP.
d. The financial statements do not present fairly the financial position, results of operations, or cash flows of the entity in conformity with GAAP.
E. Except for the effects of the matter(s) to which the qualification relates, the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the entity, in conformity with GAAP.
Homework Answers
| Situation | Answer | |
| a | There is a material uncertainty | Unqualified opinion (using explanatory paragraph) |
| b | There was a change in accounting principle | Unqualified opinion (using explanatory paragraph, change in accounting principle) |
| c | There is no material scope limitation or material departure from GAAP | Unqualified opinion (no material scope limitations) |
| d | The financial statements do not present fairly the financial position, results of operations, or cash flows of the entity in conformity with GAAP | Adverse opinion (not presented fairly) |
| e | Except for the effects of the matter(s) to which the qualification relates, the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the entity, in conformity with GAAP | Qualified opinion (except effects of the maters) |
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