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:

Quantity Supplied

The measure of a good or service that firms are eager and prepared to distribute at an established price throughout a set period.

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price in a given time period, holding all other factors constant.

Number of Sellers

Refers to the total count of providers or vendors of a particular good or service in the market.

Price of Air Conditioners

The amount of money required to purchase air conditioning units, influenced by factors such as brand, technology, energy efficiency, and market demand.