We extend this line of research by focusing on a sample of firms that received an adverse opinion
on internal controls, and examine the specific factors that affect auditor turnover, including the severity and nature of the internal control deficiencies, the amount of auditor-related fees, the length of the auditor-client relationship, and the type of audit firm that expressed the negative opinion.
The auditor should express an adverse opinion
when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.
Despite such policies being met with adverse opinion
within the marketplace, we often do not make enough noise about such proposals.
If management identifies internal control weaknesses in its report, it will receive an unqualified opinion on the accuracy of the report (Audit Opinion #1) and an adverse opinion
on the effectiveness of controls (Audit Opinion #2).
He explained there are "very serious issues" about when a restatement--defined in AS2 as, at a minimum, a significant deficiency and a strong indicator of a material weakness--leads to a material weakness and an adverse opinion
on internal control.
However, because of material internal control weaknesses in the areas of preparing financial statements and related disclosures, recording and reporting disgorgements and penalties, and information security, GAO issued an adverse opinion
on internal controls, concluding that SEC did not maintain effective internal control over financial reporting as of September 30, 2004.
After an adverse opinion
was issued, the patient and her spouse filed suit for damages against the hospital, alleging that it was strictly liable for the harm caused by the patient's receipt of a transfusion of defective blood.
Receiving a qualified or especially an adverse opinion
can have a detrimental effect on the company's ability to obtain new contracts as well as continuing performance under existing ones.
If a peer review report expresses an adverse opinion
, all deficiencies and related recommendations will be contained in the report and no letter of comments will be issued.
If you have got an adverse opinion
about horse racing, that's fine.
The company said that the reports of its former auditor didn't have any adverse opinion
or disclaimer of opinion and there were no disagreements between it and the former auditor.
The fact that the Court's adverse opinion
as to local governments is categorical and unanimous means that if local governments are to obtain relief from the regime of treble damages and civil penalties contained in the False Claims Act, that relief may have to come from Congress, not the courts.
He says giving an adverse opinion
would depend on whether discrepancies are "material and pervasive".
If the financial statement disclosures are inadequate, the auditor is required to express a qualified or adverse opinion
on the financial statements because of departures from GAAP.
On July 29, 2011, L&L's independent auditor presented L&L's board with an adverse opinion
regarding the Company's internal controls over financial reporting.