If, after the accumulation of final evidence and during the evaluation of results, the auditor concludes that there is sufficient evidence but it does not support a conclusion of fairly presented financial statements, the auditor has two choices:
A) (1) the statements must be revised to the auditor's satisfaction or (2) a disclaimer of opinion must be issued.
B) (1) either a qualified opinion must be issued or (2) an adverse opinion must be issued.
C) (1) either a disclaimer of opinion must be issued or (2) an adverse opinion must be issued.
D) (1) the statements must be revised to the auditor's satisfaction or (2) either a qualified or an adverse opinion must be issued.

Question

Quizplus · Accepted Answer

If the auditor concludes that there is sufficient evidence but it does not support a conclusion of fairly presented financial statements, the auditor has two choices: (1) the statements must be revised to the auditor's satisfaction or (2) either a qualified or an adverse opinion must be issued. The auditor may issue a qualified opinion when the financial statements depart from generally accepted accounting principles and either: (a) the effect of the departure is material, but not pervasive or (b) the effect of the departure is pervasive, but not material overall. Alternatively, the auditor may issue an adverse opinion when the financial statements are materially misstated and the effect of the misstatements is both material and pervasive.

If, After the Accumulation of Final Evidence and During the Evaluation