The SEC's position is generally that if management refuses to correct a material misstatement, then the auditor is obligated to issue a qualified or an adverse opinion on the financial statements.

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The SEC's position on this matter is indeed that if management refuses to correct a material misstatement, then the auditor is obligated to issue a qualified or an adverse opinion on the financial statements. This is in keeping with the auditor's responsibility to ensure that the financial statements are accurate and reliable, and to provide assurance to users of the financial statements that they can rely on the information presented. In cases where management is unwilling or unable to correct a material misstatement, the auditor must take action to ensure that the misstatement is appropriately disclosed in the financial statements in order to provide transparency to users of the financial statements.

The SEC's Position Is Generally That If Management Refuses to Correct