Which One of the Following Is an Instance Where the Auditor

question 43

Multiple Choice

Which one of the following is an instance where the auditor would add a paragraph after the opinion paragraph?

• A) There is serious doubt that the client can continue as a going concern.
• B) Management's disclosures are not adequate.
• C) There are significant uncertainties that are not properly disclosed in the footnotes.
• D) There is a material dollar misstatement in the financial statements.

---

Definitions:

Multiple-Step Income Statement

A multiple-step income statement is a detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income in several steps or segments.

Other Revenue

Revenue from sources other than the primary operating activity of a business.

FOB Shipping Point

A term used in shipping indicating that the buyer assumes responsibility for the goods and their transportation costs as soon as the goods leave the seller's location.

Freight Costs

Charges associated with the transportation of goods from one location to another, often considered part of inventory costs in accounting.