In Which of the Following Circumstances Would Auditors Be Most

question 87

Multiple Choice

In which of the following circumstances would auditors be most likely to express an adverse opinion?

• A)The chief executive officer refuses to provide the auditors access to minutes of board of directors' meetings.
• B)Tests of controls show that the entity's internal control is so ineffective that it cannot be relied upon.
• C)The financial statements are not in accordance with generally accepted accounting principles regarding the capitalization of leases.
• D)Information comes to the auditors' attention that raises substantial doubt about the entity's ability to continue as a going concern.

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Definitions:

Load Cell

A device used to measure weight or force by converting a mechanical load into an electrical output signal.

Capacitive Proximity Sensor

A type of sensor that can detect the presence or absence of objects through changes in the electric field, without requiring physical contact.

Ultrasonic Sensor

A type of sensor that uses ultrasonic sound waves to detect the presence, distance, or speed of objects, used in various applications including automation and robotics.

Solenoid Valves

Electromechanical valves controlled by electric current to open or close flow in a hydraulic or pneumatic system.