Which of the following opinions is necessary for a company to avoid unfavorable repercussions?
A) an adverse opinion
B) a qualified opinion
C) a disclaimer of opinion
D) an unqualified opinion

Question

Quizplus · Accepted Answer

An unqualified opinion is necessary for a company to avoid unfavorable repercussions as it means that the auditor has expressed a clean opinion and has no significant concerns regarding the company's financial statements. Any other type of opinion (adverse, qualified, or disclaimer of opinion) indicates that there are issues or limitations with the financial statements, which can lead to negative consequences for the company.

Which of the Following Opinions Is Necessary for a Company