Management of Edington Industries Plans to Disclose an Uncertainty as Follows

question 754

Multiple Choice

Management of Edington Industries plans to disclose an uncertainty as follows: The Company is a defendant in a lawsuit alleging infringement of certain patent rights and claiming damages. Discovery proceedings are in progress. The ultimate outcome of the litigation cannot presently be determined. Accordingly, no provision for any liability that may result upon adjudication has been made in the accompanying financial statements. The auditor is satisfied that sufficient audit evidence supports management's assertions about the nature and disclosure of the uncertainty. What type of opinion should the auditor express under these circumstances?

• A) Unqualified without an explanatory paragraph.
• B) "Subject to" qualified.
• C) "Except for" qualified.
• D) Disclaimer of opinion.

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Definitions:

Basolateral Amygdala

A complex region of the brain associated with emotion processing, decision-making, and memory.

Classical Conditioning Procedure

A learning process that occurs when two stimuli are repeatedly paired together; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Temporal Conditioning

A form of classical conditioning where the timing of the conditioned stimulus (without an unconditioned stimulus) is enough to produce a conditioned response.