An adverse opinion is used when there has been a material and pervasive misstatement.

Question

Quizplus · Accepted Answer

An adverse opinion is given when there has been a material and pervasive misstatement in the financial statements of an organization. This means that the misstatement is significant enough to affect the overall financial picture of the organization and is present throughout the financial statements. As a result, the auditor is unable to express an unqualified opinion and must issue an adverse opinion to alert users of the financial statements that there may be significant issues with the organization's financial health.

An Adverse Opinion Is Used When There Has Been a Material