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 report?
A) Disclaimer.
B) Review.
C) Adverse.
D) Unqualified with explanatory language.

Question

Quizplus · Accepted Answer

This situation indicates a departure from generally accepted accounting principles and is likely to result in an adverse report.

An Audit of the Flagler Company, a Diamond Mining Company