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:

In-kind Benefits

Goods and services provided directly to individuals by governments or organizations instead of cash payments.

Welfare Programs

Governmental initiatives designed to assist the needy in society by providing financial aid, food, housing, and healthcare.

Specific Goods

Specific goods are items that are distinctly identified or unique, often characterized by specific attributes, brands, or quality that differentiate them from general goods.

Means-tested

A determination of eligibility for government assistance based on the applicant's financial means or income.