Final answer:
An adverse opinion leads to adding an explanatory paragraph before the opinion paragraph and modifying the opinion paragraph to state that the financial statements do not present fairly, making option d the correct answer.
Step-by-step explanation:
When an auditor determines that the financial statements of an entity do not fairly present the financial position, results of operations, or cash flows in conformity with applicable financial reporting framework, the auditor may issue an adverse opinion. This affects the standard audit report in specific ways. The correct answer to how adverse opinions affect the standard audit report is option d, which includes:
- Adding an explanatory paragraph before the opinion paragraph to describe the reason for the adverse opinion.
- Modifying the opinion paragraph to state that the financial statements do not present fairly, which is in contrast to an unqualified or clean opinion.
Therefore, options a, b, c, and e are not entirely correct since modifying the scope paragraph is not typically associated with an adverse opinion.