Which of the Following Situations Would Not Result in Auditors

question 158

Multiple Choice

Which of the following situations would not result in auditors adding an explanatory paragraph without modifying the remainder of the report?

• A)Reference to a change in the method of accounting mandated by the issuance of a new accounting standard.
• B)Reference to a going-concern uncertainty facing the entity.
• C)Reference to a departure from GAAP that is material, but not pervasive, to the financial statements.
• D)Reference to an acquisition made by the entity during the most recent fiscal year.

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Definitions:

Purpose

The reason for which something is done or created, or for which something exists.

Regimen

A prescribed course of medical treatment, diet, or exercise for the promotion or restoration of health.

Body

Single-spaced lines of text that are the content of a business letter.

Drugs

Substances used to diagnose, treat, or prevent illnesses and affect the structure or function of the body.