If the Auditor's Opinion on the Revised Financial Statements Is

question 34

Multiple Choice

If the auditor's opinion on the revised financial statements is different from the previously issued audit report, _______.

• A)a disclaimer of opinion should be issued
• B)a scope limitation should be issued
• C)then an emphasis-of-matter paragraph should be added to the revised audit report after the opinion paragraph.
• D)then a management opinion paragraph should be added to the revised audit report after the opinion paragraph

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Definitions:

Variable Manufacturing Cost

Costs that change with the level of production output, such as raw materials and direct labor, contrasted with fixed costs.

Variable Cost Pricing

Setting prices based on the variable costs of producing a product, ignoring fixed costs.

External Reporting

The process of reporting financial and other information to stakeholders outside the organization, such as investors and regulatory authorities.

Cost Volume Profit Analysis

A financial analysis tool used to determine the changes in costs and volume on an organization's profit.