In Which of the Following Circumstances Would a Qualified Opinion

question 50

Multiple Choice

In which of the following circumstances would a qualified opinion be appropriate?

• A) The statements are not in conformity with generally accepted accounting principles regarding stock options plans and these misstatements do not have pervasive effect on the financial statements
• B) The statements are not in conformity with generally accepted accounting principles regarding stock options plans and these misstatements have pervasive effect on the financial statements
• C) The auditor has been unable to obtain sufficient competent evidential matter
• D) The principal auditors decide to withdraw from the engagement due to distrust of management

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Definitions:

Philanthropic Goodwill

The benefit or positive reputation gained by a company through charitable acts, contributions, and involvement in the community.

Social Responsibility Pyramid

A model describing the layers of responsibility that companies have, ranging from economic, legal, ethical, to philanthropic duties.

Obligation

A duty or commitment that one is bound to, legally or morally, which often involves completing certain actions or adhering to agreements.

Social Responsibility

The idea that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate.