For each of the following departures from GAAP, indicate the type of opinion that the auditors would

Question:

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 impacted only one account).

c. A departure that had a material effect on the financial statements and was pervasive (impacted a number of accounts on both the balance sheet and income statement).

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...