The External Auditor Renders an Adverse Opinion When He/she

question 17

Multiple Choice

The external auditor renders an adverse opinion when he/she:

• A) is unable to express an opinion either way because of a limitation in the work he or she was able to carry out.
• B) considers that the financial statements are not presented fairly in accordance with GAAP.
• C) is generally satisfied except for a specified departure from GAAP in the statements.
• D) is unable to obtain sufficient reliable audit evidence.

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Definitions:

Response

A reaction to a specific stimulus or situation, which can be physiological, emotional, or behavioral.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without previous conditioning.

Unlearned Reaction

An instinctual or reflexive response that occurs without prior learning or experience, typically innate and common in human and animal behavior.

Previous Conditioning

The learning or training that an individual has received in the past, which influences their current behavior or reactions.