ExpertMedium1 markMultiple Choice
CPA · Question 79 · Area III: SOC Engagements
What constitutes an 'Adverse Opinion' in a SOC report?
What constitutes an 'Adverse Opinion' in a SOC report?
Answer options:
A.
A single minor exception.
B.
The system description is not fairly presented, or controls are not effective, and the issues are pervasive.
C.
The auditor could not obtain evidence.
D.
The report is late.
How to approach this question
Adverse = Pervasive failure.
Full Answer
B.The system description is not fairly presented, or controls are not effective, and the issues are pervasive.✓ Correct
An Adverse Opinion is issued when the auditor concludes that the system is not fairly presented or controls are ineffective in a pervasive manner.
Common mistakes
Confusing Adverse with Qualified.
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