During the Year Under Audit, Forrest Corporation Experienced Significant Losses

question 114

Multiple Choice

During the year under audit, Forrest Corporation experienced significant losses due to a pervasive fraud scheme. Because of the lack of documentary evidence and inability to perform appropriate auditing procedures, the auditors were unable to determine the total amount of the loss. What type of report should the auditors issue?

• A)Qualified or adverse opinion.
• B)Disclaimer or adverse opinion.
• C)Disclaimer of opinion or qualified opinion.
• D)Unmodified opinion with an other-matter paragraph.

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Definitions:

"Window of Opportunity"

describes a period when unique circumstances allow for a particular action to be taken that may not be possible at another time.

Ovulation

Release of an ovum, or secondary oocyte, from the vesicular follicle.

Blastocyst

An early-stage embryo consisting of a sphere of cells surrounding an inner fluid-filled cavity, occurring before implantation into the uterine wall.

Inner Cell Mass

The inner cell mass is a cluster of cells inside the early embryo (blastocyst) that will eventually give rise to the embryo proper and some of the extraembryonic tissues.