An Auditor Will Issue an Adverse Opinion When ________

question 45

Multiple Choice

An auditor will issue an adverse opinion when ________.

• A)a severe scope limitation has been imposed by the client
• B)a violation of GAAP is sufficiently material that a qualified opinion is not justified
• C)a qualified opinion cannot be rendered because the auditor lacks independence
• D)the company's ability to continue as a going concern is subject to substantial doubt

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Definitions:

Response Dominates

A situation or condition in which one reaction or response prevails or is more prominent over others in influencing behavior or an outcome.

Prototype

An original form or model of something from which later versions are derived or on which they are based.

Typical Example

An instance or case that represents a common or usual pattern, often used as a standard or model to explain broader concepts.

Category

A class or division of people or things regarded as having particular shared characteristics.