If the financial statements cannot be relied upon because they contain one or more material departures from GAAP,the auditor will issue the following type of audit opinion:
A)Qualified opinion.
B)Disclaimer.
C)Adverse opinion.
D)Unqualified opinion.

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the financial statements are materially misstated and depart from GAAP to such an extent that they do not fairly present the financial position, results of operations, or cash flows of the company. It is the most severe type of audit opinion and reflects a lack of confidence in the financial statements presented by the company.

If the Financial Statements Cannot Be Relied Upon Because They