Which of the following statements is true of a company that receives an opinion other than an unqualified opinion after an audit?
A) It will find it difficult to obtain loans from banks.
B) It will be able to sell its securities to the public quite easily.
C) It must perform another audit to verify the original opinion.
D) It will not be permitted to continue its business transactions.

Question

Quizplus · Accepted Answer

Receiving an opinion other than an unqualified (or "clean") opinion can raise concerns among lenders about the company's financial health, potentially making it more difficult for the company to obtain loans.

Which of the Following Statements Is True of a Company