An audit of the Flagler Company,a diamond mining company,brings to light the fact that its equipment has been marked up to the owners' expectation of market values.Such a situation will most likely result in which type of opinion?
A)Disclaimer.
B)Review.
C)Adverse.
D)Unqualified with explanatory language.

Question

Quizplus · Accepted Answer

The situation mentioned in the scenario suggests that the financial statements of Flagler Company are materially misstated, which violates accounting standards. Therefore, the auditor will most likely express an adverse opinion, indicating that they cannot endorse the accuracy of the financial statements.

An Audit of the Flagler Company,a Diamond Mining Company,brings to Light