Your Client Has Experienced a Major Data Breach with Lawsuits

question 42

Multiple Choice

Your client has experienced a major data breach with lawsuits and fines pending of significant and uncertain amounts.These events are disclosed in the client's financial statements and are clearly explained in the notes.How do these events affect the independent auditor's report?

• A)The auditor would issue an unmodified auditor's report.
• B)The auditor would include an Emphasis of Matter paragraph titled "Data Breach" to highlight the events.
• C)The auditor would include an Other Matters paragraph titled "Data Breach" to highlight the amounts.
• D)The auditor issue a modified audit opinion due to the size of the uncertainty.

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Definitions:

Anti-aromatic

Anti-aromatic compounds are cyclic molecules that are destabilized by the presence of conjugated π electrons, failing to meet the criteria for aromatic stability.

O-bromostyrene

An organic compound composed of a bromine atom bonded to the benzene ring of styrene, used in various chemical synthesis processes.

Structure

A configuration or arrangement of elements in a material or object.

Isopropylbenzaldehyde

A compound with a benzene ring attached to an isopropyl group and an aldehyde group.