An Auditor Decides to Issue a Qualified Opinion on an Entity's

question 319

Multiple Choice

An auditor decides to issue a qualified opinion on an entity's financial statements because a major inadequacy in its computerized accounting records prevents the auditor from applying necessary procedures. The opinion paragraph of the auditor's report should state that the qualification pertains to:

• A) A client-imposed scope limitation.
• B) A departure from generally accepted auditing standards.
• C) The possible effects on the financial statements.
• D) Inadequate disclosure of necessary information.

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Definitions:

Median

A statistical measure representing the middle value in a data set, where half of the data points are above and half are below.

Data Set

A collection of related sets of information that is composed of separate elements but can be manipulated as a unit by a computer.

Median

A statistical measure representing the middle value in a set of numbers, which divides the data into two equal halves.

Mean

An average of a group of values, computed by dividing the sum of the group of values by the number of values in the group.