The Auditors Include an Explanatory Paragraph in an Otherwise Unqualified

question 79

Multiple Choice

The auditors include an explanatory paragraph in an otherwise unqualified report on the entity's financial statements to emphasize that the entity being reported on had significant transactions with related parties. The inclusion of this separate paragraph

• A)is considered a qualification of the opinion.
• B)violates generally accepted auditing standards if this information is already disclosed in footnotes to the financial statements.
• C)necessitates a revision of the Opinion Section to include the phrase "with the foregoing explanation."
• D)is appropriate and would not otherwise affect the unqualified opinion.

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Definitions:

Reverse Discrimination

Refers to the act of giving preferential treatment to members of previously disadvantaged or minority groups, which is perceived as discriminating against those in the majority.

Latino Employees

Workers who identify as Latino, emphasizing the diverse cultural, national, or ethnic backgrounds they may come from.

Affirmative Action

Policies and procedures designed to combat discrimination and promote diversity in hiring and admissions.

Employment Selection Procedures

The systematic processes used by organizations to identify, evaluate, and hire new employees.