When an External Auditor Unknowingly Fails to Modify an Opinion

question 266

Multiple Choice

When an external auditor unknowingly fails to modify an opinion on financial statements that are materially misstated, this is an example of:

• A) An inherent risk.
• B) A control risk.
• C) An audit risk.
• D) A residual risk.

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Definitions:

Department of Labor

A federal department responsible for promoting the welfare of job seekers, wage earners, and retirees in the United States by improving their working conditions, advancing their opportunities for profitable employment, protecting their retirement and healthcare benefits, and ensuring workplace safety.

Workers

Individuals engaged in some form of employment, contributing labor for the production of goods and services.

Congressional Budget Office

A federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.

Agricultural Subsidies

are governmental financial support paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.