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:

Products or Services

Refers to the goods that are manufactured and sold or the tasks that are performed by a business in exchange for money.

Individual

Refers to a single human being as separate from a group, class, or family.

Organization

An entity comprising multiple people, such as an institution or an association, that has a particular purpose.

1099

A series of IRS tax forms used to report various types of income other than wages, salaries, and tips.