An auditor would issue an adverse opinion if
A) The auditor encounters adverse attitudes toward the auditor on the part of client management.
B) A qualified opinion cannot be given because the auditor is not qualified to do so.
C) An immaterial misstatement is present.
D) The statements taken as a whole do not fairly present the financial condition and results of operations of the company.

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the auditor has determined that the financial statements, taken as a whole, do not fairly present the financial condition and results of operations of the company. This is a more serious level of qualification than a qualified opinion, which is given when the auditor believes that the financial statements are fairly presented except for a specific area or issue. Therefore, option D is the best choice for an adverse opinion.

An Auditor Would Issue an Adverse Opinion If