When There Is a Material Inconsistency Between the Financial Report

question 34

Multiple Choice

When there is a material inconsistency between the financial report and other information in the annual report and the client refuses to change the information, the auditor should:

• A) include an emphasis of matter section in the audit report.
• B) issue a qualified opinion.
• C) do nothing as the audit opinion is confined to the financial report.
• D) advise ASIC and the ASX.

---

Definitions:

Smallest Unit

The smallest measurable or functional element or part of something, often referred to in different contexts (e.g., atom in physics, cell in biology).

Life

A characteristic that distinguishes physical entities with biological processes, such as signaling and self-sustaining processes, from those that do not, either because such functions have ceased or never had them.

Ecosystem

A biological community of interacting organisms and their physical environment, interconnected through nutrient cycles and energy flows.

Physical Environment

The external surroundings and conditions in which an organism lives, including land, water, air, and other natural factors influencing its growth and survival.