Hart, CPA, Is Auditing the Year 2 Financial Statements of Kell

question 58

Multiple Choice

Hart, CPA, is auditing the year 2 financial statements of Kell Co. Previously, Hart audited Kell's year 1 financial statements and expressed a qualified opinion due to a scope limitation. Hart decides to include an explanatory paragraph in the year 2 report because comparative financial statements are being presented for year 2 and year 1. This paragraph should indicate the

• A)substantive reasons for the prior year's qualification.
• B)reason that Hart continued to provide audit services, despite the previous scope limitation.
• C)consistency of application of accounting principles between year 2 and year 1.
• D)restriction on the distribution of the report.

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Definitions:

Naturalistic Observation

An investigative technique where participants are studied in their natural settings without interference from the researcher.

Hospital Personnel

Individuals employed within a hospital setting, encompassing a wide range of roles from medical professionals to support and administrative staff.

Gender Differences

Variations in characteristics, behaviors, and demographics, typically attributed to or distinguishing between males and females.

Naturalistic Observation

A research method involving observing subjects in their natural environment without intervening, in order to study behavior in a real-world setting.