In Which One of the Following Instances Would an Auditor

question 90

Multiple Choice

In which one of the following instances would an auditor most likely issue an adverse opinion?

• A) Management declines to present earnings per share in the income statement.
• B) There is substantial doubt about the entity's ability to continue as a going concern.
• C) There is a material dollar misstatement that overshadows the overall financial statements.
• D) The client does not allow the auditor to send confirmations to its three largest customers.

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Definitions:

Investing

Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit.

Accounting Rule-Making Bodies

Organizations or groups responsible for setting standards and regulations in the accounting field, like FASB or IASB.

CAP

An abbreviation often referring to the "Capitalization" of a company, which is the sum of a company's stock, long-term debt, and retained earnings.

FASB

The Financial Accounting Standards Board, a private, non-profit organization standard setter, which establishes the generally accepted accounting principles (GAAP) within the United States.