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When a private college's financial statements are not in accordance with Generally Accepted Accounting Principles (GAAP), auditors have a responsibility to communicate this discrepancy in their opinion. An adverse opinion is appropriate in this situation because it signifies that the financial statements, as a whole, are materially misstated or misleading, thereby failing to adhere to GAAP.

This opinion highlights to users of the financial statements—such as donors, government agencies, and potential investors—that the information presented cannot be relied upon for decision-making purposes. It is an important part of the auditor's role to ensure transparency and maintain trust in financial reporting.

The standard unqualified opinion would imply that the financial statements are free from material misstatement and conform to GAAP, which is not the case here. Not rendering an opinion altogether would leave stakeholders without any assessment of the financial statements' reliability, which does not fulfill the auditor's responsibilities. Basing their opinion on GASB standards is also inappropriate, as the college is a private institution and should adhere to GAAP instead. Therefore, issuing an adverse opinion effectively communicates the seriousness of the deviations from GAAP.