In Which One of the Following Instances Would an Auditor

question 46

Multiple Choice

In which one of the following instances would an auditor most likely issue a disclaimer of opinion?

• A) Management will not sign a management representation letter.
• B) Management declines to provide a statement of cash flow.
• C) The auditor is independent of the client.
• D) The auditor is unable to confirm receivables but performs alternative procedures.

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Definitions:

Units of Output

The individual items or quantities of service produced by a company, sector, or economy.

Demand Curve

A visual representation that shows the relationship between the price of a product and the quantity of it that consumers are willing and able to purchase at various prices.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a good or service.