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.

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter15: Audit Reports On Financial Statements
Section: Chapter Questions
Problem 22MCQ
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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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