Which of the following is the most likely reason for an auditor to issue an adverse opinion?
A) Inability to gather any sufficient relevant information to form the basis for the opinion
B) Misstatements that are material and pervasive
C) Going concern issue
D) Misstatements that are material but not pervasive

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the financial statements contain material and pervasive misstatements, meaning they are both significant and widespread throughout the financial statements. Options A and C may result in a disclaimer of opinion or a qualified opinion, respectively, while option D may result in a qualified opinion.

Which of the Following Is the Most Likely Reason for an Auditor