Auditors should disclose the substantive reasons for expressing an adverse opinion on the entity's financial statements in
A)the Opinion on the Financial Statements section.
B)the Basis for Opinion section.
C)the Critical Audit Matters section.
D)the footnotes to the financial statements.

Question

Quizplus · Accepted Answer

The substantive reasons for expressing an adverse opinion on the entity's financial statements are disclosed in the Opinion on the Financial Statements section of the auditor's report. This section directly addresses the auditor's opinion on the financial statements and is the appropriate place to explain why an adverse opinion is being given.

Auditors Should Disclose the Substantive Reasons for Expressing an Adverse