When Auditors Conclude That a Material and Pervasive Departure from GAAP

question 1

Multiple Choice

When auditors conclude that a material and pervasive departure from GAAP exists in an entity's financial statements,which of the following phrases would most likely be included in their report?

• A)"Do not present fairly in all material respects".
• B)"Except for the effects of the departure from generally accepted accounting principles,as discussed in the preceding paragraph".
• C)"We were engaged to audit the accompanying financial statements".
• D)"As a result of the departures discussed in the following paragraph".

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