An adverse opinion is issued when the auditor cannot perform appropriate audit procedures because of a scope limitation.

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the auditor concludes that the financial statements of an entity are materially misstated. When the auditor cannot perform appropriate audit procedures because of a scope limitation, a disclaimer of opinion is issued, not an adverse opinion.

An Adverse Opinion Is Issued When the Auditor Cannot Perform