When the auditor issues an adverse opinion,the auditor should state in the opinion paragraph,that
A)in the auditor's opinion,because of the significance of the matter described in the basis for adverse opinion paragraph,the financial statements are not presented fairly in accordance with the applicable reporting framework
B)because of the significance of the matter described in the basis for adverse opinion paragraph,the auditor has not been able to obtain sufficient appropriate evidence to provide a basis for an audit opinion,and accordingly,the auditor does not express an opinion on the financial statements
C)except for the effects of the matter described in the basis for modification paragraph,the financial statements are presented fairly,in all material respects,in accordance with the applicable reporting framework
D)the financial statements are presented fairly,in all material respects,in accordance with the applicable reporting framework

Question

Quizplus · Accepted Answer

An adverse opinion is issued when the financial statements are materially misstated and not presented fairly in accordance with the applicable reporting framework. Therefore, the auditor should state in the opinion paragraph that, in the auditor's opinion, because of the significance of the matter described in the basis for adverse opinion paragraph, the financial statements are not presented fairly in accordance with the applicable reporting framework. Option B is for a disclaimer of opinion and Option C is for a qualified opinion. Option D is for an unmodified opinion.

When the Auditor Issues an Adverse Opinion,the Auditor Should State