Under Which of the Following Set of Circumstances Might the Auditors

question 71

Multiple Choice

Under which of the following set of circumstances might the auditors disclaim an opinion?

• A) The financial statements contain a departure from generally accepted accounting principles, the effect of which is material
• B) The auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion
• C) There has been a material change between periods in the method of the application of accounting principles
• D) Differences with management that lead to trust issues on the part of the auditor

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Definitions:

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family related by blood or marriage who are closely involved with its operations.

Necessity-based Entrepreneurship

Entrepreneurial activities initiated out of a need, often due to lack of employment opportunities, rather than a pure desire to pursue an opportunity.

Family Businesses

Companies owned and managed by one or more family members, often passed down through generations.

Social Entrepreneurship

The practice of identifying, starting, and managing ventures aimed at addressing social, cultural, or environmental issues, using innovative and sustainable solutions.