According to the AICPA Principles, Which of the Following Is

question 32

Multiple Choice

According to the AICPA principles, which of the following is incorrect?

• A) If the auditor has reservations about the fairness of financial statement presentation, the reason(s) must be stated in the auditor's report.
• B) If there is a material departure from GAAP in the financial statements, the auditor should explicitly state the nature of the departure and the dollar effects where determinable.
• C) Auditors should state the reasons why an unqualified opinion cannot be issued.
• D) Auditors should issue an unqualified opinion in all cases where companies have provided an entire set of financial statements and footnotes that include all years presented for comparative purposes.

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Definitions:

Émile Durkheim

A foundational French sociologist known for his studies on social integration, collective conscience, and the role of rituals in societal cohesion.

Participant Observation

A qualitative research method where the researcher immerses themselves in a group or community to observe behaviors and interactions from within.

Covert Observation

Observational research in which the subject(s) are unaware that they are being observed, often used to gather more natural behavior data.

Environment

The surrounding physical, biological, and socioeconomic conditions and factors that influence the growth, development, and survival of organisms and human communities.