An auditor who has reservations about the effectiveness of a client company's internal controls would issue an adverse opinion on internal controls.

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the auditor believes that the internal controls are not effective, meaning that they do not sufficiently address the company's risks. It is a negative opinion, indicating a lack of confidence in the company's systems and resulting in a lower level of assurance provided by the auditor's report.

An Auditor Who Has Reservations About the Effectiveness of a Client