In Which One of the Following Cases Would an Auditor

question 71

Multiple Choice

In which one of the following cases would an auditor most likely issue a qualified opinion?

• A) There is a highly material, and very pervasive departure from SFAS No. 141 and No. 142.
• B) There is a change in accounting principles promulgated by the FASB.
• C) There is an immaterial dollar misstatement on the financial statements.
• D) There is one material departure from GAAP that is affects only two accounts.

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Definitions:

Research Costs

Expenses related to the investigation and exploration of materials, processes, or markets to generate new knowledge.

Development Costs

Expenditures associated with the research and development of a company's products or services, which might be capitalized or expensed depending on the nature of the project and accounting standards.

Intangible Assets

Assets that do not have physical substance but are identifiable and provide future economic benefits, such as patents, trademarks, and copyrights.

Physical Substance

This refers to the tangible nature of an asset, meaning it can be seen, touched, or physically measured.