Pete, a CPA, is participating in an audit engagement of ABC
Company. He has performed the...
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Pete, a CPA, is participating in an audit engagement of ABCCompany. He has performed the audit and has determined that anunqualified/unmodified is to be issued but he would like to expandon the rationale for the unqualified/unmodified opinion. What arethe situations in which an explanatory paragraph would be necessaryin an unqualified/unmodified opinion.
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Situations in which an explanatory paragraph would be necessary in an unqualified unmodified opinion are as follows 1 Justified departure from GAAP The client has to prove to the auditor that unusual circumstances would mislead the stakeholder if they followed GAAP procedures The auditor needs to decide if the unusual circumstances are a result
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