When an Adverse, Qualified or Disclaimer of Opinion Is Issued

question 9

Multiple Choice

When an adverse, qualified or disclaimer of opinion is issued, ASA 705 requires that the auditor's report includes:

• A) a clear description of all the substantive reasons for the opinion.
• B) where practicable, a quantification of the possible effect on the financial report.
• C) both A and B
• D) neither A nor B

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Definitions:

Acculturation

The process through which individuals or groups from one culture come to adopt the practices and values of another culture while still maintaining their original cultural identities.

Assimilation

The process by which a person or a group's language and/or culture come to resemble those of another group, often involving the loss of the original linguistic or cultural characteristics.

Ethnic Homogeneity

The state of a population being largely of the same ethnicity, leading to cultural and genetic similarities.

Population Density

Population density measures the number of individuals living within a specific area, typically expressed per square kilometer or mile.