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

Question

Quizplus · Accepted Answer

An adverse opinion is issued when financial statements are materially misstated and do not conform to accounting standards, such as the CPA Canada Handbook.

In Which of the Following Circumstances Is an Auditor Most