Final answer:
When an auditor issues an adverse opinion, the scope paragraph is expanded to identify additional procedures performed by the auditor and to detail the reasons for the conclusion that the financial statements are not fairly presented.
Step-by-step explanation:
When an auditor issues an adverse opinion, this indicates that the financial statements of a company materially misstate the financial position and/or results of operations, and therefore do not conform to generally accepted accounting principles (GAAP).
In such a scenario, the scope paragraph in the audit report would not just remain as is, nor would it be qualified or deleted. Instead, it would be expanded to identify the additional procedures that the auditor performed in an attempt to determine the nature and extent of the financial statement misstatements.
The expanded scope paragraph will detail the reasons for the auditor's conclusion that the financial statements are not fairly presented, which leads to the adverse opinion. It's part of the auditor's attempt to communicate the reasons behind the adverse opinion to the users of the financial statements.