Final answer:
If a departure from the FASB standards is necessary to prevent misleading information in financial statements, a public accounting firm can issue a clean (unmodified) opinion with an explanatory paragraph detailing the justification for the departure.
Step-by-step explanation:
When a client's financial statements contain a material departure from an FASB Statement of Accounting Standards, and the public accounting firm believes the departure is necessary to ensure that the financial statements are not misleading, the firm can issue a clean (unmodified) opinion. This scenario often occurs when following a standard to the letter would present a financial situation that does not accurately reflect the financial health or status of the company. In such cases, the deviation must be justified, and the reason for the departure should be clearly explained within the financial statements. The goal is to present a fair and accurate representation of the company's financial position. If the auditors determine that adhering strictly to the standards would result in misleading financial statements, and if they are satisfied that the departure is more representative, they would not issue an adverse or a qualified opinion, but rather opt for an unqualified opinion with an explanatory paragraph describing the situation and justification for the departure.