Auditors found that the entity has not capitalized a material amount of leases in the financial statements. When considering the materiality of this departure from GAAP, the auditors would choose between which reporting options?a. Unmodified opinion or disclaimer of opinion.b. Unmodified opinion or qualified opinion.c. Unmodified opinion with an emphasis-of-matter paragraph or an adverse opinion.d. Qualified opinion or adverse opinion.
Auditors found that the entity has not capitalized a material amount of leases in the financial statements. When considering the materiality of this departure from GAAP, the auditors would choose between which reporting options?a. Unmodified opinion or disclaimer of opinion.b. Unmodified opinion or qualified opinion.c. Unmodified opinion with an emphasis-of-matter paragraph or an adverse opinion.d. Qualified opinion or adverse opinion.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Auditors found that the entity has not capitalized a material amount of leases in the financial statements. When considering the materiality of this departure from GAAP, the auditors would choose between which reporting options?
a. Unmodified opinion or disclaimer of opinion.
b. Unmodified opinion or qualified opinion.
c. Unmodified opinion with an emphasis-of-matter paragraph or an adverse opinion.
d. Qualified opinion or adverse opinion.
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