In which of the following circumstances would an auditor of financial statements be most likely to express an adverse opinion?
A) The statements are not in conformity with FASB requirements regarding the capitalization of leases.
B) Information comes to the auditor's attention that raises substantial doubt about the entity's ability to continue in existence.
C) The chief executive officer refuses the auditor access to minutes of board of directors' meetings.
D) Tests of controls show that the entity's internal control is so poor that it can not be relied upon.

Question

Quizplus · Accepted Answer

An adverse opinion is issued when financial statements are materially misstated and not in accordance with accounting standards. Option A describes a situation where the financial statements do not conform to FASB requirements, which could lead to a material misstatement.

In Which of the Following Circumstances Would an Auditor of Financial