The Auditors Conclude That an Entity's Illegal Act, Which Has

question 94

Multiple Choice

The auditors conclude that an entity's illegal act, which has a material effect on the financial statements, has not been properly accounted for or disclosed. Depending on the overall materiality and pervasiveness of the effect of this illegal act on the financial statements, the auditors should express either a(n)

• A)adverse opinion or a disclaimer of opinion.
• B)qualified opinion or an adverse opinion.
• C)disclaimer of opinion or an unqualified opinion with a separate explanatory paragraph.
• D)unqualified opinion with a separate explanatory paragraph or a qualified opinion.

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Definitions:

Granular Body

Cytoplasmic structures composed of granules, found in various types of cells, often associated with the storage and secretion of substances.

RNA

Ribonucleic acid, a nucleic acid present in all living cells that acts as a messenger carrying instructions from DNA for controlling the synthesis of proteins.

Lipid Bilayers

A fundamental structure of cell membranes, consisting of two layers of lipid molecules with hydrophilic heads and hydrophobic tails.

Self-sealing

Characterizes materials or devices capable of automatically closing or repairing themselves after being punctured or cut.