When a Material Uncertainty Exists,the Auditor Must

question 21

Multiple Choice

When a material uncertainty exists,the auditor must

• A)disclose it in the audit report.
• B)first determine the materiality of the item and whether adequate disclosure is included in the financial statements.
• C)issue a disclaimer of opinion.
• D)issue a modified opinion.

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Definitions:

Internal Referencing Strategy

A method in decision-making that relies on an individual's personal standards or experiences, rather than external sources.

Post-only Design

A research design involving measurements taken only after an intervention, with no pre-test comparison.

Cognitive Variables

Factors related to mental processes of perception, memory, judgment, and reasoning, as affecting learning or behavior.

Reaction Measures

Evaluation tools used to gauge immediate responses or feedback to training or learning activities.