When Single-Year Financial Statements Are Presented, an Auditor Ordinarily Would

question 852

Multiple Choice

When single-year financial statements are presented, an auditor ordinarily would express an unqualified opinion in an unmodified report if the:

• A) Auditor is unable to obtain audited financial statements supporting the entity's investment in a foreign affiliate.
• B) Entity declines to present a statement of cash flows with its balance sheet and related statements of income and retained earnings.
• C) Auditor wishes to emphasize an accounting matter affecting the comparability of the financial statements with those of the prior year.
• D) Prior year's financial statements were audited by another CPA whose report, which expressed an unqualified opinion, is not presented.

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Definitions:

Recall

The act of retrieving information or memories from the past without the use of explicit cues or stimuli.

Decay Theory

Theory stating that when an individual learns something new, a neurochemical memory trace forms, but over time this trace disintegrates; suggests that the passage of time always increases forgetting.

Neurochemical Memory

Refers to how memories are stored and retrieved through the action of neurotransmitters and neural pathways in the brain.

Memory Trace

The physical change in the brain, presumably involving synaptic modifications, that represents the memory of an experience.