Question: An auditors special report on financial statements prepared in conformity with the cash basis of accounting should include a separate explanatory paragraph before the opinion

An auditor’s special report on financial statements prepared in conformity with the cash basis of accounting should include a separate explanatory paragraph before the opinion paragraph that

a. Justifies the reasons for departing from generally accepted accounting principles.

b. States whether the financial statements are fairly presented in conformity with another comprehensive basis of accounting.

c. Refers to the note to the financial statements that describes the basis of accounting.

d. Explains how the results of operations differ from financial statements prepared in conformity with generally accepted accounting principles.

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