When the auditor knows that the financial statements may be misleading because they were not prepared in accordance with an acceptable financial reporting framework,he or she must issue
A)a qualified opinion.
B)an adverse opinion.
C)a disclaimer of opinion.
D)a qualified or an adverse opinion,depending on the materiality of the item in question.

Question

Quizplus · Accepted Answer

An auditor issues a qualified or an adverse opinion depending on the materiality and pervasiveness of the issues found. If the misstatements are material but not pervasive, a qualified opinion is issued. If the misstatements are both material and pervasive, an adverse opinion is issued.

When the Auditor Knows That the Financial Statements May Be