The Auditors Include an Emphasis-Of-Matter Paragraph in an Otherwise Unmodified

question 97

Multiple Choice

The auditors include an emphasis-of-matter paragraph in an otherwise unmodified report on the entity's financial statements to emphasize that the entity being reported on had significant transactions with related parties. The inclusifis considered a qualification of the opinion.on 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 unmodified opinion.

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Definitions:

Income Taxes

Taxes imposed by the government on the income generated by businesses and individuals.

Independent Contractors

Workers who provide services to a business under terms specified in a contract, not considered as employees of the company.

Misclassified

Incorrectly identified or categorized, often referring to an error in grouping data, information, or individuals based on attributes or characteristics.

Company Logo

A graphical mark or symbol used by a business as part of its brand identity to distinguish itself from competitors.