Under Certain Circumstances, the Auditor Is Required to Provide Additional

question 13

Multiple Choice

Under certain circumstances, the auditor is required to provide additional information regarding the financial report even though he or she intends to express an unmodified opinion. Normally, such explanatory information should be:

• A) included in the opinion paragraph.
• B) included in the scope paragraph.
• C) included in an emphasis of matter paragraph.
• D) included in the introductory paragraph.

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Definitions:

Inventory Value

The total cost or market value of all the goods and materials held by a company for the purpose of resale.

Units Sold for $55

This term specifies a sales data point, indicating the number of units of a product sold at a price of $55 each.

Periodic Weighted

A method of inventory valuation that assigns a weighted average cost to items, based on the cost of goods available for sale during a period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.