When an Entity Will Not Permit Inquiry of Outside Legal

question 166

Multiple Choice

When an entity will not permit inquiry of outside legal counsel, the auditors' report on the entity's financial statements will ordinarily contain a(n)

• A)disclaimer of opinion.
• B)qualified opinion referencing a departure from generally accepted accounting principles.
• C)unmodified opinion with an emphasis-of-matter paragraph.
• D)adverse opinion.

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Definitions:

Form 941

A tax form used by employers to report quarterly federal tax withholdings from their employees, including income tax, Social Security, and Medicare taxes.

Quarterly Basis

A time frame used for financial processes, including tax payments and reporting, divided into four equal parts over the year.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies and unemployment insurance.

Medicare Taxes

Taxes that fund Medicare, a federal health insurance program, deducted from the paychecks of employees and also paid by employers.