In Which of the Following Circumstances May Auditors Issue the Standard

question 65

Multiple Choice

In which of the following circumstances may auditors issue the standard (unmodified) 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:

Axon

A long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.

Homeostasis

The process by which living organisms regulate their internal environment to maintain stable, optimal conditions despite changes in the external environment.

Vital Activities

Essential processes or actions necessary for the maintenance of life, including breathing, feeding, digestion, and reproduction among organisms.

Autonomic Nervous System

The part of the nervous system responsible for controlling bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.