When Auditors Lack Independence, Which of the Following Is True

question 127

Multiple Choice

When auditors lack independence, which of the following is true about the report on the entity's financial statements that should be issued?

• A)The auditors should disclaim an opinion and should state specifically that they are not independent.
• B)The auditors should disclaim an opinion but not mention that they are not independent.
• C)The auditors should issue an unmodified opinion with an other-matter paragraph stating that they are not independent.
• D)The auditors should issue a qualified opinion with an other-matter paragraph stating that they are not independent.

---

Definitions:

Freshwater Lake

A large body of standing water that contains low concentrations of dissolved salts, distinct from sea water, providing habitat for a diverse range of organisms.

Cultural Eutrophication

The process by which water bodies become enriched with nutrients from human activity, leading to excessive growth of algae and deterioration of water quality.

Game Fish

Describes species of fish targeted for recreational fishing, often subject to specific regulations regarding their capture, to conserve and manage populations.

Suffocation

The condition of experiencing a lack of oxygen supply to the body, often leading to unconsciousness or death.