When an adverse opinion is given, all the substantive reasons for the opinion must be disclosed in the report in basis of modification explanatory paragraphs.

Question

Quizplus · Accepted Answer

This statement is true. According to auditing standards, when an adverse opinion is given, the report must disclose all substantive reasons for the opinion in basis of modification explanatory paragraphs. This provides transparency and clarity for stakeholders reading the report.

When an Adverse Opinion Is Given, All the Substantive Reasons