Which of the Following Situations Would Not Result in Auditors

question 117

Multiple Choice

Which of the following situations would not result in auditors adding an emphasis-of-matter paragraph or section to their report without modifying the remainder of the report?

• A)Reference to a change in the method of accounting mandated by the issuance of a new accounting standard.
• B)Reference to a going-concern uncertainty facing the entity.
• C)Reference to a departure from GAAP that is material, but not pervasive, to the financial statements.
• D)Reference to an acquisition made by the entity during the most recent fiscal year.

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Definitions:

Water Table

The upper surface of the zone of saturation in the ground, below which the soil, gravel, or rock is saturated with water.

Subsurface Material

Materials found beneath the Earth's surface, which can include soil, rock, liquids, and gases.

Groundwater Divide

A relatively high area of the water table, separating groundwater that flows in opposite directions.

Subsurface Material

Refers to the layer of soil, rock, and other materials that lie beneath the surface of the Earth.