Adverse opinions are preceded by a separate paragraph that should meet all of the following except for:
A) Substantive alternative treatments of GAAP
B) Substantive reasons for the adverse opinion
C) Principal effect of the adverse treatment on financial position and results of operations and cash flows
D) Entitled "Basis for Adverse Opinion"

Question

Quizplus · Accepted Answer

The paragraph preceding an adverse opinion should include substantive reasons for the adverse opinion, the principal effect of the adverse treatment on financial position and results of operations and cash flows, and be entitled "Basis for Adverse Opinion." However, it is not necessary to provide substantive alternative treatments of GAAP in this paragraph.

Adverse Opinions Are Preceded by a Separate Paragraph That Should