Which of the following phrases would an auditor most likely include in the auditor's report when expressing a qualified opinion due to inadequate disclosure?
a. Except for the omission of the information described in the Basis for Qualified Opinion paragraph.
b. Subject to the departure from generally accepted accounting principles, as described above.
c. With the foregoing explanation of these omitted disclosures.
d. Do not present fairly.
Answer:A
Choice "a" is correct. When inadequate disclosure has a material but not pervasive effect on the financial statements, the auditor's opinion should state "In our opinion, except for the omission of the information described in the Basis for Qualified Opinion paragraph..."
Choice "b" is incorrect. This language is not used. When inadequate disclosure has a material but not pervasive effect on the financial statements, the auditor's opinion should state "In our opinion, except for the omission of the information described in the Basis for Qualified Opinion paragraph..."
Choice "c" is incorrect. This language is not used. When inadequate disclosure has a material but not pervasive effect on the financial statements, the auditor's opinion should state "In our opinion, except for the omission of the information described in the Basis for Qualified Opinion paragraph..."
Choice "d" is incorrect. The statement "do not present fairly" would be used in an adverse opinion, not a qualified opinion.