An adverse opinion is issued when the auditor believes
A)some parts of the financial statements are materially misstated or misleading.
B)the financial statements will be found to be misleading or misstated,if an adequate investigation is performed.
C)the overall financial statements are so materially misstated or misleading as a whole that they do not present fairly the financial position or results of operations and changes in financial position.
D)the audit firm is not independent.

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the auditor believes that the overall financial statements are so materially misstated or misleading as a whole that they do not present fairly the financial position or results of operations and changes in financial position. This means that the financial statements are not reliable and cannot be trusted by the users.

An Adverse Opinion Is Issued When the Auditor Believes