If the Auditors Obtains Sufficient Appropriate Evidence on the Entity's

question 153

Multiple Choice

If the auditors obtains sufficient appropriate evidence on the entity's accounts receivable balance by alternative procedures because it is impracticable to confirm accounts receivable, the opinion on the entity's financial statements should be unqualified and would

• A)disclose the fact that alternative procedures were used due to client-imposed scope limitation.
• B)disclose in the Basis for Opinion section that confirmation of accounts receivable was impracticable.
• C)not mention the alternative procedures.
• D)include an explanatory paragraph that discloses the performance of alternative procedures.

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Definitions:

Example

A representative instance or case used to illustrate a principle, pattern, or procedure.

Executed Contract

A fully performed contract; a contract at the stage when both parties have performed or fulfilled their obligations.

Example

An illustration or instance used to explain or support a statement or principle.

Infant's Liability

The legal responsibilities and limitations on contracts or agreements entered into by minors, often subject to special rules and protections.