When an auditor expresses an adverse opinion, the opinion paragraph should include:
A)the principal effects of the departure from generally accepted accounting principles.
B)a statement that the financial statements do not present fairly.
C)the substantive reasons for the financial statements being misleading.
D)a description of the uncertainty or scope limitation that prevents an unqualified opinion.

Question

Quizplus · Accepted Answer

When an auditor expresses an adverse opinion, the opinion paragraph should state that the financial statements do not present fairly in accordance with generally accepted accounting principles. This is the principal reason for an adverse opinion. The other options are more applicable for a qualified opinion or disclaimer of opinion.

When an Auditor Expresses an Adverse Opinion, the Opinion Paragraph