An adverse opinion is most likely to be appropriate when there is:
A) a scope limitation
B) a misstatement confined to a specific item
C) a disagreement with those charged with governance which is material and pervasive
D) inconsistent other information

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the auditor concludes that the misstatements are both material and pervasive to the financial statements, indicating that the financial statements do not present fairly the financial position, results of operations, or cash flows of the entity in accordance with the applicable financial reporting framework. A disagreement with those charged with governance over something that is material and pervasive could lead to such a conclusion.

An Adverse Opinion Is Most Likely to Be Appropriate When