ASA 720 Requires the Auditor to Read Other Information in Documents

question 34

Multiple Choice

ASA 720 requires the auditor to read other information in documents containing audited financial reports that pertains directly to the financial report and to compare that information to make sure that it corresponds. If there is a material inconsistency, the client should be requested to change the information. If the client refuses, the auditor should:

• A) include an explanatory paragraph in the audit report or withdraw from the engagement.
• B) include an emphasis of matter section in the audit report.
• C) issue a qualified opinion or withdraw from the engagement.
• D) issue an adverse opinion.

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Definitions:

Cardiovascular Function

The performance and health of the heart and blood vessels, crucial for circulating blood throughout the body.

Range of Motion

The full movement potential of a joint, usually its range of flexion and extension.

Muscle Strength

The capacity of a single muscle or a collection of muscles to apply power against a resisting force.

Balance

Consists of mental, physical, emotional, spiritual, and environmental components and is attained when each component reaches a state of equilibrium.