An auditor will issue an adverse opinion when ________.
A)a severe scope limitation has been imposed by the client
B)a violation of GAAP is sufficiently material that a qualified opinion is not justified
C)a qualified opinion cannot be rendered because the auditor lacks independence
D)the company's ability to continue as a going concern is subject to substantial doubt

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the violation of GAAP is sufficiently material that a qualified opinion is not justified. A severe scope limitation will result in a disclaimer of opinion, lack of independence will result in a withdrawal from the engagement, and substantial doubt about a company's ability to continue as a going concern will result in a qualified opinion.

An Auditor Will Issue an Adverse Opinion When ________