Final answer:
The statement is true; auditors use the term 'except for' in the opinion paragraph of a qualified report to indicate specific areas of exception in the financial statements.
Step-by-step explanation:
True, whenever an auditor issues a qualified report, the auditor must use the term 'except for' in the opinion paragraph. This is because a qualified report signifies that, except for the effects of some matter or matters, the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with the applicable financial reporting framework. The use of 'except for' indicates that the auditor has taken exception to certain specific areas of the financial statements. The rest of the financial statements are considered to show a true and fair view. The auditor's report includes this phrase to draw attention to the areas where the financial statements may not conform to the generally accepted accounting principles (GAAP) or where the auditor has been unable to obtain sufficient appropriate evidence.