Qualified Opinion in Financial Statements | CFA® Level 1 Exam Preparation

Qualified Opinion on Financial Statements

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Question

When financial statements are presented that are not in conformity with generally accepted accounting principles, an auditor may express a Qualified Opinion

Disclaimer of an Opinion -

Qualified Opinion Disclaimer of an Opinion

I. Yes No -

II. Yes Yes -

III. No Yes -

IV. No No -

Answers

Explanations

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A. B. C. D.

C

Departures from GAAP may result in either a qualified or an adverse opinion. The auditor must exercise judgment as to the materiality of the departure. If the departure from GAAP is not sufficiently material to require an adverse opinion, the auditor should express a qualified opinion.