Departures from GAAP. For each of the following departures from GAAP, indicate thetype of opinion that the auditors would issue as well as any modifications that would bemade to the standard (unmodified) report.a. A departure that had an immaterial effect on the financial statements.b. A departure that had a material effect on the financial statements (this effect was notpervasive and affected only one account).c. A departure that had a material effect on the financial statements and was pervasive(affected a number of accounts on both the balance sheet and income statement).
Departures from GAAP. For each of the following departures from GAAP, indicate thetype of opinion that the auditors would issue as well as any modifications that would bemade to the standard (unmodified) report.a. A departure that had an immaterial effect on the financial statements.b. A departure that had a material effect on the financial statements (this effect was notpervasive and affected only one account).c. A departure that had a material effect on the financial statements and was pervasive(affected a number of accounts on both the balance sheet and income statement).
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
Chapter1: Auditing: Integral To The Economy
Section: Chapter Questions
Problem 16MCQ
Related questions
Question
Departures from GAAP. For each of the following departures from GAAP, indicate the
type of opinion that the auditors would issue as well as any modifications that would be
made to the standard (unmodified) report.
a. A departure that had an immaterial effect on the financial statements.
b. A departure that had a material effect on the financial statements (this effect was not
pervasive and affected only one account).
c. A departure that had a material effect on the financial statements and was pervasive
(affected a number of accounts on both the balance sheet and income statement).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning