Auditors should disclose the substantive reasons for expressing an adverse opinion on the entity's financial statements in
A)the Adverse Opinion Section.
B)the Basis for Adverse Opinion Section.
C)the Auditor's Responsibilities for the Audit of the Financial Statements Section.
D)the footnotes to the financial statements.

Question

Quizplus · Accepted Answer

The Basis for Adverse Opinion section is where the auditor should disclose the substantive reasons for expressing an adverse opinion on the entity's financial statements. This section explains why the financial statements are materially misstated and the specific reasons for the adverse opinion. The other sections listed do not specifically address the disclosure of reasons for an adverse opinion.

Auditors Should Disclose the Substantive Reasons for Expressing an Adverse