If a Lawyer Refuses to Provide the Auditor with Information

question 40

Multiple Choice

If a lawyer refuses to provide the auditor with information that is within the lawyer's jurisdiction and may directly affect the fair presentation of financial statements about material existing lawsuits (asserted claims) or unasserted claims,the audit report would have to be

• A)an adverse opinion.
• B)a qualified opinion.
• C)an unqualified opinion with an explanatory paragraph.
• D)modified to reflect the lack of available evidence (i.e. ,scope limitation).

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Definitions:

Cash Dividend

A distribution of a company's earnings to its shareholders in the form of cash.

Consolidated Balance Sheet

A balance sheet that presents the assets, liabilities, and equity of a parent company and its subsidiaries as one entity, after eliminating inter-company transactions.

Deferred Income Tax Asset

A Deferred Income Tax Asset is an accounting term for items that reduce future tax payments due to temporary differences between the financial statement carrying amount and the tax basis of assets and liabilities.

Consolidated Income Tax

Income tax accounting that includes all income, exemptions, and credits of a consolidated group of companies.