Which of the following opinions is necessary for a company to avoid unfavorable repercussions on the company?
A) an adverse opinion
B) a qualified opinion
C) a disclaimer of opinion
D) an unqualified opinion

Question

Quizplus · Accepted Answer

An unqualified opinion is necessary for a company to avoid unfavorable repercussions on the company. It means that the financial statements present a fair and accurate representation of the company's financial position and performance, without any material misstatements or omissions. Other opinions (adverse, qualified, or disclaimer) indicate issues or limitations with the financial statements and can negatively impact the company's reputation and credibility with investors and stakeholders.

Which of the Following Opinions Is Necessary for a Company