The opinion paragraph of the audit report for Schnook Co.states that the financial statements "do not present fairly." Which type of audit opinion is this?
A)Improper.
B)Adverse.
C)Disclaimer.
D)Qualified.

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the auditor concludes that the financial statements as a whole are materially misstated, and do not present fairly in accordance with the applicable financial reporting framework. This is the most negative type of audit opinion.

The Opinion Paragraph of the Audit Report for Schnook Co