Under which circumstance would an adverse opinion NOT be issued?
A)The financial statements are not fairly presented according to GAAP.
B)The auditor lacks independence.
C)There are material misstatements in the financial statements.
D)All of the above would lead to an adverse opinion.

Question

Quizplus · Accepted Answer

An adverse opinion would not be issued solely due to lack of auditor independence. However, a lack of independence would result in a disclaimer of opinion. Adverse opinions are only issued if the financial statements are not fairly presented according to GAAP or if there are material misstatements in the financial statements.

Under Which Circumstance Would an Adverse Opinion NOT Be Issued