In Which of the Following Circumstances Would Auditors Most Likely

question 74

Multiple Choice

In which of the following circumstances would auditors most likely add an emphasis-of-matter paragraph or additional section to the standard (unmodified) report without modifying the opinion on the entity's financial statements?

• A)The auditors are asked to report on the balance sheet, but not on the other basic financial statements.
• B)There is substantial doubt about the entity's ability to continue as a going concern.
• C)Management's estimates of the effects of future events on the entity's financial condition, results of operations, and cash flows are unreasonable.
• D)Certain transactions cannot be tested because of management's records retention policy.

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Definitions:

Positive Message

Communication that focuses on affirmative information or feedback, intended to encourage or uplift the recipient.

Positive Message

Communication that conveys good news, optimism, or any positive information to the receiver.

Transmission

The act of sending or conveying something from one person, place, or thing to another.

Information

Data, facts, or details obtained through research, experience, or instruction, which can be analyzed or used to make decisions.