In Which of the Following Circumstances May Auditors Issue the Standard

question 41

Multiple Choice

In which of the following circumstances may auditors issue the standard report on the entity's financial statements?

• A)The entity changed accounting principles having an immaterial effect on the entity's financial position, results of operations, and cash flows.
• B)The auditors wish to emphasize a matter regarding the financial statements.
• C)The auditors reference component auditors who examined a subsidiary of group financial statements.
• D)The auditors have not been able to audit a substantial portion of the balance sheet because of a circumstance-imposed scope limitation.

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Definitions:

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of hours worked to produce those goods and services.

Capital Per Worker

The total capital stock of an economy divided by the number of labor workers, influencing productivity.

Labor Productivity

A measure of economic performance that calculates the amount of goods and services produced per hour of labor.

Per-Worker Production Function

The relationship between the amount of capital per worker in the economy and average output per worker.