A Disclaimer of Opinion Is Issued When

question 35

Multiple Choice

A disclaimer of opinion is issued when

• A) All informative disclosures have not been made in the financial statements.
• B) Circumstances prevent the auditor from performing all audit procedures necessary to comply with generally accepted auditing standards.
• C) The financial statements are not prepared in accordance with generally accepted accounting principles.
• D) There is a potential going concern issue.

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Definitions:

Functional Departmentation

The process of organizing a business into distinct departments, each responsible for a specific function or area, such as marketing or finance.

Centralized

The concentration of control, authority, or decision-making power within a singular or limited locale or organization hierarchy.

Communication

The process of sharing information, ideas, feelings, and messages through speech, writing, signals, or behaviors.

Effort Duplication

The unnecessary repetition of work or tasks, often resulting in wasted resources and time.