When Disclaiming an Opinion Due to a Client-Imposed Scope Limitation

question 148

Multiple Choice

When disclaiming an opinion due to a client-imposed scope limitation, auditors should describe the nature of the scope limitation and modify the

• A)Opinion Section.
• B)Opinion Section and Auditor's Responsibilities for the Audit of the Financial Statements Section.
• C)Opinion Section, Basis for Opinion Section, and Auditor's Responsibilities for the Audit of the Financial Statements Section.
• D)Basis for Opinion Section and Auditor's Responsibilities for the Audit of the Financial Statements Section.

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Definitions:

Main Determinant

The primary factor or condition that influences an outcome or result.

Price Elasticity of Supply

The measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price.

Demand-Side

Pertaining to the aspects of the economy influenced by consumer spending and preferences, impacting overall demand for goods and services.

Market Failure

The inability of a market to bring about the allocation of resources that best satisfies the wants of society; in particular, the overallocation or underallocation of resources to the production of a particular good or service because of externalities or asymmetric information, or because markets fail to provide desired public goods.