Rehan & Co has been appointed as an external auditor of Limba Plc for the financial year 2011-12. Rehan & Co has identified some problems in the financial statements and now at the final stage of writing the report on the audit.
In which of the following case, Rehan & Co may issue an adverse opinion?
A . Some parts of the financial statements of Limba Plc are materially misstated or misleading.
B . Some parts of the financial statements of Limba Plc found misleading or misstated on the performed investigation but Rehan & Co is not sure about their pervasiveness.
C . The overall financial statements of Limba Plc are as materially misstated or misleading as a whole that they do not present fairly the financial position or results of operations and cash flows in conformity with IFR
E . The audit firm, Rehan & Co, is not independent from the management of Limba Plc.
Answer: C
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