( Author )
09 July 2012
We know that adverse report is given by the auditor when he does not agree with the affirmation made in the financial statements and the financial statement do not present true and fair views of the state of affairs and the working results of the organization.The auditor should state the reasons for issuing such a report.
But 1)what can be the possible effect when an adverse report is given to a listed company? 2)What tax or legal implication the company has to face? 3)Can the company carry on its normal day to day operating activities after the report being given? 4) After all what should the next step be for the company after receiving such report?