Restrictions Imposed by an Entity Prohibited the Observation of Physical

question 144

Multiple Choice

Restrictions imposed by an entity prohibited the observation of physical inventories, which accounted for 35 percent of total assets. Alternative auditing procedures were not feasible, although the auditors were able to examine satisfactory evidence for all other items in the financial statements. The auditors would most likely express

• A)a qualified opinion on the entity's financial statements, referring to a departure from generally accepted accounting principles.
• B)a disclaimer of opinion on the entity's financial statements.
• C)an unqualified opinion on the entity's financial statements with an explanatory paragraph.
• D)an unqualified opinion on the entity's financial statements with a modification of the Basis for Opinion section.

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Definitions:

Cohort-Sequential

A research design utilized in developmental psychology that combines both cross-sectional and longitudinal methods to study changes over time within different cohorts.

Longitudinal

A type of study or research design that follows the same subjects over a period of time, observing changes or developments.

Scientific Method

A systematic process for research that involves observation, hypothesis formulation, experimentation, and conclusion to test scientific theories.

Conducting Research

The systematic process of gathering, analyzing, and interpreting data to answer specific questions or test hypotheses.