If, After the Accumulation of Final Evidence and During the Evaluation

question 18

Multiple Choice

If, after the accumulation of final evidence and during the evaluation of results, the auditor concludes that sufficient evidence has NOT been obtained to draw a conclusion about fairness of the client's representations, there are two choices:

• A) (1) obtain additional evidence or (2) issue a qualified opinion or a disclaimer of opinion.
• B) (1) obtain additional information or (2) issue an adverse opinion.
• C) (1) issue a qualified opinion or (2) issue a disclaimer of opinion.
• D) (1) issue a disclaimer of opinion or (2) withdraw from the engagement.

Recognize the appropriate use of apologies in negative-news messages.

Distinguish between direct and indirect strategies for refusing requests or claims.

Understand how to maintain future relations or business after delivering bad news.

Apply positive wording in the construction of messages.

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Definitions:

Partnership

A lawful business structure involving two or more people who distribute both the management responsibilities and the profits.

Sole Proprietorship

A business structure where a single individual owns and runs the business, responsible for all its debts and liabilities.

Debt Financing

Borrowing money that must be repaid over time, with interest.

Collateral

is an asset pledged as security for the repayment of a loan, forfeitable in the case of default.