Asked by Kelvyn almanzar on May 23, 2024
Verified
If Small Co.uses a GAAS auditing standard,it will-most likely-be subject to an adverse opinion.
GAAS Auditing
Standards that guide the conduct of audits on the financial statements of companies, known as Generally Accepted Auditing Standards.
Adverse Opinion
An auditor’s opinion that states that deviations from generally accepted accounting principles are so serious that an unqualified opinion is impossible and a qualified opinion is not justified.
- Understand the importance and application of Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS).
Verified Answer
LD
Lyanne DaisyMay 30, 2024
Final Answer :
False
Explanation :
If Small Co. properly complies with GAAS auditing standards, they should receive an unqualified opinion. An adverse opinion would only be issued if there were significant departures from GAAS or material misstatements in the financial statements.
Learning Objectives
- Understand the importance and application of Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS).