An auditor who determines a company is materially misstating certain items on its financial statements should issue
A)an unqualified opinion.
B)a qualified opinion.
C)an adverse opinion.
D)a disclaimer of opinion.

Question

Quizplus · Accepted Answer

An adverse opinion should be issued when the auditor concludes that the financial statements of the company are materially misstated and the effect of the misstatement is both material and pervasive. It indicates that the financial statements or information contained therein are not reliable, do not fairly represent the financial position, results of operations or cash flows of the entity, and are in violation of Generally Accepted Accounting Principles (GAAP).

An Auditor Who Determines a Company Is Materially Misstating Certain