When a CPA firm finds that the financial statements of the company being audited are not in compliance with Generally Accepted Accounting Principle the firm will issue which of the following?
A)Adverse Opinion
B)Disclaimer
C)Unqualified Opinion
D)Qualified Opinion

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the CPA firm determines that the financial statements of the company being audited are not in compliance with Generally Accepted Accounting Principles (GAAP) and that the departures from GAAP are so significant and pervasive that the financial statements as a whole are materially misstated. This is the most extreme type of opinion that can be issued by a CPA firm.

When a CPA Firm Finds That the Financial Statements of the Company