Auditors should disclose the substantive reasons for expressing an adverse opinion on the entity's financial statements in an additional paragraph
A)Preceding the Auditor's Responsibility section
B)Preceding the opinion paragraph.
C)Following the opinion paragraph.
D)Within the footnotes to the financial statements.

Question

Quizplus · Accepted Answer

The substantive reasons for expressing an adverse opinion on the entity's financial statements should be disclosed in an additional paragraph preceding the opinion paragraph. This allows for clear communication and transparency of the auditor's opinion and reasons for expressing it.

Auditors Should Disclose the Substantive Reasons for Expressing an Adverse