In which of the following circumstances would an adverse opinion be appropriate?
A)An uncertainty prevents the issuance of an unmodified report.
B)The auditor is not independent with respect to the enterprise being audited.
C)A client-imposed scope limitation prevents the auditor from complying with the auditing standards.
D)The financial report is prepared on the going concern basis when it is not appropriate.

Question

Quizplus · Accepted Answer

An adverse opinion is appropriate when the financial report is not presented fairly in accordance with the accounting standards or when the financial report is prepared on the going concern basis when it is not appropriate. Therefore, option D is the correct choice. Option A refers to a qualified opinion, option B refers to a disclaimer of opinion, and option C refers to a scope limitation.

In Which of the Following Circumstances Would an Adverse Opinion