The external auditor renders an adverse opinion when he/she:
A) is unable to express an opinion either way because of a limitation in the work he or she was able to carry out.
B) considers that the financial statements are not presented fairly in accordance with GAAP.
C) is generally satisfied except for a specified departure from GAAP in the statements.
D) is unable to obtain sufficient reliable audit evidence.

Question

Quizplus · Accepted Answer

An adverse opinion is given when the auditor considers that the financial statements are not presented fairly in accordance with GAAP. This is a serious opinion and it indicates that the financial statements are materially misstated which means they are not reliable.

The External Auditor Renders an Adverse Opinion When He/she