I Under What Circumstances Is a Disclaimer of Opinion Appropriate

question 20

Essay

i. Under what circumstances is a disclaimer of opinion appropriate?
ii. Under what circumstances is an adverse opinion appropriate?
iii. Under what circumstances is an emphasis of matter appropriate?

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Definitions:

Variable Overhead Cost Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the actual level of activity.

Fixed Overhead Cost Variance

The difference between the actual fixed overhead costs incurred and the expected (or budgeted) fixed overhead costs.

Variable Overhead Efficiency Variance

A calculation that shows the cost impact of the difference between the actual and expected efficiency in using variable overhead resources in production.

Relevant Information

Data that can influence a decision-making process because it is pertinent and has a bearing on the situation.