Question $4($Mandatory$)$

An auditor is likely to issue an adverse audit report when the auditor concludes which of the following?

The auditor concludes that a specific part of the financial statement is misstated $($e$.$g$.,$ accounts

payable balance$)$ and the client refuses to correct the misstatement

The auditor concludes that financial statements contain at least one material misstatement that is

pervasive and the client refuses to correct the misstatement

The auditor concludes that the client's management is adverse toward auditors

None of the above

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