An Auditor Would Issue an Adverse Opinion If

question 37

Multiple Choice

An auditor would issue an adverse opinion if

• A) The audit was begun by other independent auditors who withdrew from the engagement.
• B) A qualified opinion cannot be given because the auditor lacks independence.
• C) A restriction on the scope of the audit was significant.
• D) The statements taken as a whole do not fairly present the financial condition and results of operations of the company.

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Definitions:

Decision-making Authority

The power or right vested in a particular position or role within an organization to make decisions affecting its operations or directions.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aimed at facilitating free movement of goods, services, and people.

Executive Body

A group or committee with the authority to make decisions and govern within an organization, institution, or government.

Drafts Legislation

The process of creating and writing proposed laws for consideration by legislative bodies.