It is appropriate to issue an opinion that contains the phrase 'does not present a true and fair view' when:
A) the auditor has not accumulated sufficient appropriate evidence to determine whether the financial report is presented fairly.
B) there has been a material misstatement on a particular matter that is material.
C) there has been a material misstatement on a particular matter that is material and pervasive.
D) None of the above.

Question

Quizplus · Accepted Answer

When there has been a material misstatement on a particular matter that is material and pervasive, it means that the misstatement is both significant and widespread enough to affect the overall fairness of the financial statements. In this case, it would be appropriate for the auditor to issue an opinion that states that the financial report 'does not present a true and fair view'. Option A is incorrect because a lack of sufficient evidence does not necessarily imply that the financial report does not present a true and fair view. Option B is not the best choice because a material misstatement on a particular matter may not necessarily affect the overall fairness of the financial statements. Option D is incorrect because one of the other options is the best choice.

It Is Appropriate to Issue an Opinion That Contains the Phrase