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:

Dependent Variables

Variables in an experiment that are expected to change as a result of changes in the independent variables.

Independent Variables

Variables that are manipulated or controlled in an experiment to test their effect on dependent variables.

Inclusion

The practice of ensuring all individuals, regardless of their differences, have equal access to opportunities and resources.

Sample Size

The number of observations or individuals in a subset of a population selected for a particular study.