If the auditor finds serious problems with a firm's financial statements, which opinion will be reported?
A) clean opinion
B) unqualified opinion
C) adverse opinion
D) qualified opinion

Question

Quizplus · Accepted Answer

If the auditor finds serious problems with a firm's financial statements, an adverse opinion will be reported. An adverse opinion states that the financial statements are not presented fairly in accordance with generally accepted accounting principles (GAAP) and should not be relied upon by investors or other users. This is the most severe type of audit opinion. A clean opinion (A) or unqualified opinion (B) indicates that the financial statements are presented fairly in accordance with GAAP and that there are no material misstatements or omissions. A qualified opinion (D) indicates that the financial statements are presented fairly in accordance with GAAP except for a specific issue that the auditor has identified.

If the Auditor Finds Serious Problems with a Firm's Financial