Which of the following opinions is necessary for a company to avoid unfavorable consequences (for example,not being able to sell its securities to the public)?
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 consequences as it indicates that the financial statements are presented fairly, in all material respects, and in accordance with the accounting principles generally accepted in the United States. This type of opinion gives investors and stakeholders confidence in the company's financial position, which can help the company sell its securities to the public. Adverse, qualified, or disclaimer opinions all indicate issues with the company's financial statements, which can lead to a lack of confidence from investors and potential negative consequences.

Which of the Following Opinions Is Necessary for a Company