If inventory is the largest balance on the financial statements, a large misstatement would be so material that the auditor should issue
A) an unqualified opinion.
B) a qualified opinion.
C) an adverse opinion.
D) a disclaimer of opinion.

Question

Quizplus · Accepted Answer

A large misstatement in inventory, which is the largest balance on the financial statements, would have a significant impact on the overall financial statements. Therefore, the auditor should issue an adverse opinion indicating that the financial statements are materially misstated and unreliable.

If Inventory Is the Largest Balance on the Financial Statements