When Management Is Unable to Provide an Explanation for a Previously

question 158

True/False

When management is unable to provide an explanation for a previously unrecognized risk identified through the analytical procedures, the auditor must issue an adverse opinion.

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Definitions:

Full Moon

The phase of the moon when it is fully illuminated from Earth's perspective, appearing as a bright, circular disc.

Direct Observation

The method of gathering data through immediate, firsthand experience and observation in a natural or control setting.

Reasoning

The process of thinking about something in a logical way to form a conclusion or judgment.

Knowledge

Information, understanding, or skill that one gains through experience or education.