A disclaimer of opinion may be considered a red flag by investors.

Name: A disclaimer of opinion may be considered a red flag by investors.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

A disclaimer of opinion means that the auditor could not express an opinion on the financial statements, indicating a lack of sufficient evidence or material weaknesses in the entity's internal control system. This can raise concerns for investors about the accuracy and reliability of the financial statements, potentially affecting investment decisions.

A Disclaimer of Opinion May Be Considered a Red Flag