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    PracticeCPA®CPA ISC Practice Exam 5Question 79
    Medium1 markMultiple Choice
    Area III: SOC EngagementsSOC ReportsOpinionsArea III

    CPA · Question 79 · Area III: SOC Engagements

    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
    The system description is not fairly presented, or controls are not effective, and the issues are pervasive.
    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.
    Question 78All questionsQuestion 80

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