The Auditors Include an Explanatory Paragraph in an Otherwise Unqualified

question 79

Multiple Choice

The auditors include an explanatory paragraph in an otherwise unqualified report on the entity's financial statements to emphasize that the entity being reported on had significant transactions with related parties. The inclusion 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 unqualified opinion.

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Definitions:

External-Reinforcement Schedule

This involves the regulation of behavior based on rewards or punishments administered from an outside source, used in various behavioral conditioning frameworks.

Positive Punishment

Adding an undesirable stimulus to decrease a behavior.

Negative Punishment

A behavior modification technique involving the removal of a desirable stimulus to decrease the probability of an undesirable behavior being repeated.

Negative Reinforcement

A process that strengthens a behavior by removing or reducing an undesirable outcome when the behavior is performed.