The Auditors Conclude That There Is a Material Inconsistency in the "Other

question 85

Multiple Choice

The auditors conclude that there is a material inconsistency in the "other information" in an annual report to shareholders containing audited financial statements. If the auditors conclude that the financial statements do not require revision, but the entity refuses to revise or eliminate the material inconsistency, the auditors may

• A)issue a qualified opinion on the entity's financial statements, citing a departure from generally accepted accounting principles.
• B)consider the matter closed since the other information is not included in the audited financial statements.
• C)issue an adverse opinion on the entity's financial statements due to inadequate disclosure.
• D)revise the report on the entity's financial statements to include an additional section describing the material inconsistency.

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Definitions:

Trivialize Cognitions

The process of minimizing or reducing the perceived importance or value of thoughts and beliefs.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions (thoughts, beliefs, or attitudes).

Exercise Behavior

The patterns and habits of physical activity performed by an individual to maintain or improve health.

External Incentive

A motivator or reward from the outside environment that encourages specific behaviors or actions.