At the Conclusion of an Audit, an Auditor Is Reviewing

question 859

Multiple Choice

At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor concludes that the evidence obtained is not sufficient to support management's representations. Which of the following actions is the auditor most likely to take?

• A) Consult with the audit committee and issue a disclaimer of opinion.
• B) Consult with the audit committee and issue a qualified opinion.
• C) Obtain additional evidence regarding the valuation of inventory.
• D) Obtain a statement from management supporting their inventory valuation.

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Definitions:

Middle Adulthood

A life stage typically between the ages of 40 and 65, characterized by stability, maturity, and increased responsibility.

Midlife Crisis

A psychological state encountered during the middle age, often characterized by emotional turmoil and reevaluation of one's life and achievements.

Levinson

Describes the theory proposed by Daniel Levinson regarding stages of adult development, focusing on periods of transition and stable phases throughout the adult life span.

Generativity

A concern for establishing and guiding the next generation, often considered a stage of personal development in adulthood.