When an Adverse Opinion Is Expressed, the Opinion Paragraph Should

question 52

Multiple Choice

When an adverse opinion is expressed, the opinion paragraph should include a direct reference to:

• A) A note to the financial statements which discusses the basis for the opinion.
• B) The Auditor's Responsibility section of the audit report which discusses the basis for the opinion rendered.
• C) A separate paragraph (section) which discusses the basis for the opinion rendered.
• D) The consistency in the application of generally accepted accounting principles.

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Definitions:

Bearer Instruments

Financial documents that accord ownership or payment to the person physically holding the document.

Payable

Refers to an amount of money that is owed by a person or company and is required to be paid to another party.

Bearing Them

Taking responsibility for or dealing with something, often implying a burden or hardship that must be endured.

Transferable

Characteristic of an item, right, or obligation, that allows it to be passed from one party to another, often involving legal documentation.