In Which of the Following Situations Would an Auditor Ordinarily

question 720

Multiple Choice

In which of the following situations would an auditor ordinarily choose between expressing a qualified opinion or an adverse opinion?

• A) The auditor did not observe the entity's physical inventory and is unable to become satisfied about its balance by other auditing procedures.
• B) Conditions that cause the auditor to have substantial doubt about the entity's ability to continue as a going concern are inadequately disclosed.
• C) There has been a change in accounting principles that has a material effect on the comparability of the entity's financial statements.
• D) The auditor is unable to apply necessary procedures concerning an investor's share of an investee's earnings recognized on the equity method.

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Definitions:

Forced Insistence

Involves compelling someone to accept an idea or condition through persistent pressure or demand.

Method of Induction

A logical process in which multiple premises, gathered through observations, are combined to obtain a general conclusion.

Restrictive Techniques

Methods or strategies used to limit certain behaviors, activities, or engagement in specific contexts.

Authoritative

A child-rearing style in which parents are restrictive and demanding yet communicative and warm.