When an Adverse Opinion Is Expressed on the Financial Statements

Multiple Choice

When an adverse opinion is expressed on the financial statements of a nonpublic company,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 basis for modification paragraph (section) .
D) The consistency in the application of generally accepted accounting principles.