In which of the following circumstances would an auditor most likely express an adverse opinion?
A) The CEO refuses to let the auditor have access to the board of director meeting minutes.
B) The financial statements are not in conformity with the FASB statement on loss contingencies.
C) Information comes to the auditor's attention that raises substantial doubt about the ability for the client to continue as a going concern.
D) Tests of controls show that the internal control structure is so poor that the auditor has to assess control risk at the maximum.

Question

Quizplus · Accepted Answer

An adverse opinion is expressed when the financial statements materially depart from accounting standards and are not fairly presented. In this case, not conforming to the FASB statement on loss contingencies would be a basis for an adverse opinion because it indicates that the financial statements do not accurately reflect the company's financial position according to generally accepted accounting principles (GAAP).

In Which of the Following Circumstances Would an Auditor Most