An Auditor Would Issue an Adverse Opinion If

question 2

Multiple Choice

An auditor would issue an adverse opinion if

• A) The auditor encounters adverse attitudes toward the auditor on the part of client management.
• B) A qualified opinion cannot be given because the auditor is not qualified to do so.
• C) An immaterial misstatement is present.
• 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:

Other Comprehensive Income

Components of total comprehensive income that are not part of net income, including items that have not been realized, such as unrealized gains or losses on available-for-sale securities.

Dividend Yield

A metric showing the annual dividend payments of a corporation as a proportion of its share price.

Market Price

The immediate value at which an asset or service is offered for buying or selling.

Available-for-Sale Investments

Securities that are not classified as held-to-maturity or trading securities, and can be sold in the future.