In Which of the Following Circumstances Would Auditors Most Likely

question 74

Multiple Choice

In which of the following circumstances would auditors most likely add an emphasis-of-matter paragraph or additional section to the standard (unmodified) report without modifying the opinion on the entity's financial statements?

• A)The auditors are asked to report on the balance sheet, but not on the other basic financial statements.
• B)There is substantial doubt about the entity's ability to continue as a going concern.
• C)Management's estimates of the effects of future events on the entity's financial condition, results of operations, and cash flows are unreasonable.
• D)Certain transactions cannot be tested because of management's records retention policy.

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Definitions:

The Big Five Model

A personality framework consisting of five broad dimensions used to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Basic Dimensions

Fundamental aspects or components that can be measured or assessed to describe or analyze a subject or context.

Personality

The amalgamation of properties or characteristics that constitute an individual's distinct personality.

Sensing And Intuiting

Refers to the preference over gathering information through direct sensory experience (Sensing) versus looking at patterns and possibilities (Intuiting) in the Myers-Briggs personality framework.