An auditor would issue an adverse opinion if
A) The auditor encounters adverse attitudes toward the auditor on the part of company 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 if the financial statements taken as a whole do not fairly present the financial condition and results of operations of the company. This means that the financial statements are materially misstated and the auditor is unable to give a clean opinion. Adverse attitudes towards the auditor, the auditor's own qualifications, or immaterial misstatements are not sufficient reasons to issue an adverse opinion.

An Auditor Would Issue an Adverse Opinion If