Before Reaching a Final Decision on the Audit Opinion to Be

question 29

Multiple Choice

Before reaching a final decision on the audit opinion to be issued, a conference is generally held with the client. At this meeting, all of the following may be expected, except:

• A) an oral report of the auditor's major findings.
• B) the auditor's rationale for proposed adjustments or additional disclosures.
• C) delivery of the written communication of audit matters to those charged with governance
• D) agreement between the auditor and client on the changes to be made.

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Definitions:

Intentional Misstatement

Deliberate falsification or omission of information in financial records or statements.

Financial Reporting

The method by which declarations are created to reveal the financial condition of an organization to its managers, investors, and governmental bodies.

External Auditor

An independent third-party professional who examines the financial statements of a company to provide an opinion on their accuracy and compliance with accounting standards.

Cost-Plus Contracts

Agreements where a contractor is paid for all construction-related expenses plus a contracted profit.