Under Which of the Following Circumstances Would a Disclaimer of Opinion

question 15

Multiple Choice

Under which of the following circumstances would a disclaimer of opinion be appropriate?

• A)The client refuses to allow the auditor to review the minutes of the Board of Director's meetings.
• B)The financial statements fail to contain adequate disclosure of related party transactions.
• C)The auditor is engaged during the year and is unable to observe opening physical inventories which are material.
• D)The auditor has identified illegal payments to foreign officials made by the client's management.

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Definitions:

Appealing

The process of applying to a higher court for a reversal of the decision of a lower court.

Writ of Certiorari

A legal order issued by a higher court to review the decision and proceedings of a lower court.

Offer of Proof

A legal procedure in a trial where a party outlines what evidence would show if it were allowed, often used after an objection to evidence has been sustained.

Class Action

A lawsuit filed by one or more plaintiffs on behalf of a larger group of people who are similarly affected by the same issue.