When Auditors Conclude That a Material and Pervasive Departure from GAAP

question 27

Multiple Choice

When auditors conclude that a material and pervasive departure from GAAP exists in an entity's financial statements, which of the following phrases would most likely be included in their report?

• A)"Do not present fairly."
• B)"Except for the effects of the matter described in the Basis for Opinion section of our report…"
• C)"We were engaged to audit the accompanying financial statements."
• D)"As a result of the departures discussed in the Opinion on the Financial Statements section of our report…"

---

Definitions:

Term of Appointment

The specified duration for which an individual is appointed to a position, role, or office.

Lifetime

The duration or extent of a person's life or the existence period of an object, product, or agreement.

Senate

A legislative assembly in some countries, often part of a bicameral system, tasked with making and passing laws.

Presidential Election

A formal decision-making process by which a country's citizens choose an individual to hold the office of President.