The auditors conclude that there is a material inconsistency in the "other information" in an annual report to shareholders containing audited financial statements. If the auditors conclude that the financial statements do not require revision, but the entity refuses to revise or eliminate the material inconsistency, the auditors may

A. Issue an "except for" qualified opinion on the entity's financial statements, citing a departure from generally accepted accounting principles.

B. Consider the matter closed since the other information is not in the audited financial statements.

C. Issue an adverse opinion on the entity's financial statements due to inadequate disclosure.

D. Revise the report on the entity's financial statements to include a separate explanatory paragraph describing the material inconsistency.

Answer rating: 100% (QA)

Correct Answer D Explanation The auditors responsibility with re... View the full answer