Under Which of the Following Circumstances Would an Auditor's Expression

question 626

Multiple Choice

Under which of the following circumstances would an auditor's expression of an unqualified opinion be inappropriate?

• A) The auditor is unable to obtain the audited financial statements of a significant subsidiary.
• B) The financial statements are prepared on the entity's income tax basis.
• C) There are significant deficiencies in the design and operation of the entity's internal control.
• D) Analytical procedures indicate that many year-end account balances are not comparable with the prior year's balances.

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Definitions:

Human Resource Management

involves recruiting, hiring, deploying, and managing an organization's employees.

Value Chain

A series of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.

Service Chain

The sequence of processes involved in the production and delivery of a service.

Activities System

The integrated set of actions or tasks performed by an organization or a part of it to achieve its objectives.