The audit opinion issued when there are material misstatemen

The audit opinion issued when there are material misstatements in the financial statements is the: A. adverse opinion. B. disclaimer of opinion. C. unqualified opinion. D. qualified opinion.

Solution

A. adverse opinion.

An adverse opinion is used only when the auditor believes that the overall financial statements are so materially misstated or misleading that they do not present fairly the financial position or results of operations.