Question

Which of the following situations would not result in auditors adding an additional paragraph to their report without modifying the introductory, scope, or opinion paragraphs of that report?A. Reference to a change in the method of accounting mandated by the issuance of a new accounting standard.B. Reference to a going-concern uncertainty facing the entity.C. Reference to a departure from GAAP that is material, but not pervasive, to the financial statements.D. Reference to an acquisition made by the entity during the most recent fiscal year.

Answer 1

Answer:

The answer is letter C.

Explanation:

The situation that would not result in auditors adding an additional paragraph to their report is reference to a departure from GAAP that is material, but not pervasive, to the financial statements.