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      Question

      An auditor finds that significant information is missing

      from financial statements and the effect is material and pervasive. What type of audit opinion should be issued?
      A Qualified opinion Correct Answer Incorrect Answer
      B Adverse opinion Correct Answer Incorrect Answer
      C Disclaimer of opinion Correct Answer Incorrect Answer
      D Unqualified opinion Correct Answer Incorrect Answer

      Solution

      When misstatement is both material and pervasive, an adverse opinion is appropriate.

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