In the Auditor's Report, the Principal Auditor Decides Not to Make

question 69

Multiple Choice

In the auditor's report, the principal auditor decides not to make reference to another CPA who audited a client's subsidiary. The principal auditor could justify this decision if, among other requirements, the principal auditor:

• A) Issues an unqualified opinion on the consolidated financial statements.
• B) Learns that the other CPA issued an unqualified opinion on the subsidiary's financial statements.
• C) Is unable to review the audit programs and audit documentation of the other CPA.
• D) Is satisfied as to the independence and professional reputation of the other CPA.

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Definitions:

Fixed-Interval

In the context of psychology, a schedule of reinforcement where rewards are given after a specific, constant amount of time has passed.

Stimulus Generalization

The tendency for a conditioned response to be triggered by stimuli similar to the original conditioning stimulus.

Look-Alike Packaging

Packaging designed to mimic the appearance of a popular brand's product, often to confuse consumers or to leverage the brand's identity.

Masked Branding

Masked branding is a strategy where a company's products are marketed without clear association with the parent brand, often to appeal to a different market segment or to test new markets.