A Client Has Capitalizable Leases but Refuses to Capitalize Them

question 8

Multiple Choice

A client has capitalizable leases but refuses to capitalize them in the financial statements. Which of the following reporting options does an auditor have if the misstatements have a material and pervasive effect on the financial statements?

• A)Qualified opinion.
• B)Unmodified opinion.
• C)Disclaimer of opinion.
• D)Adverse opinion.

---

Definitions:

Gastrointestinal Function

Refers to the activities of the digestive system, including ingestion, digestion, absorption, and excretion of food and nutrients.

Clay Colour Stool

Refers to pale or light-colored stool, which may indicate a problem with the liver, gallbladder, or pancreas.

Internal Anal Sphincter

The innermost muscle of the anus, responsible for maintaining continence and controlling the expulsion of feces.

Urge To Defecate

The natural sensation of needing to pass stools from the body.