Start learning →

Failure to consolidate a material subsidiary would likely lead the auditor to give:

AAn unqualified opinion
BAn adverse opinion
CA disclaimer of audit
DNo audit report made
Answer & Solution
Correct answer: B. An adverse opinion
Not consolidating a material subsidiary makes the statements differ pervasively from GAAP, warranting an adverse opinion.
Practise this question with Quill — CA Final →

Keep practising Accounting Scandal

Browse all Accounting Scandal questions for CA Final, or explore more Auditing topics.

Start a Accounting Scandal lesson →
Related questions