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[1] Source: CMA 0688 3-22
Answer (A) is incorrect because an
unqualified opinion can be expressed
only when statements are fairly
presented in accordance with GAAP.
Answer (B) is incorrect because a
qualified opinion is expressed when,
except for the matter to which the
qualification relates, the financial
statements are presented fairly, in all
material respects, in conformity with
GAAP.
Answer (C) is incorrect because an
except for opinion is expressed when,
except for the matter to which the
qualification relates, the financial
statements are presented fairly, in all
material respects, in conformity with
GAAP.
Answer (D) is correct. An auditor must
express an adverse opinion when the
financial statements taken as a whole
are not presented fairly in conformity
with GAAP. "An adverse opinion states
that the financial statements do not
present fairly the financial position or
the results of operations or cash flows
in conformity with GAAP" (AU 508).