In Which One of the Following Instances Would an Auditor

question 46

Multiple Choice

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

• A) Management will not sign a management representation letter.
• B) Management declines to provide a statement of cash flow.
• C) The auditor is independent of the client.
• D) The auditor is unable to confirm receivables but performs alternative procedures.

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Definitions:

Administrative Facilities

Buildings and spaces used for the management and support functions of an organization.

Utilities

Services provided to the public, including water, electricity, natural gas, sewage, and telecommunications, often considered essential.

Indirect

Relates to costs or expenses that are not directly tied to a specific product or service but are necessary for the business to operate.

Salespersons' Salaries

Fixed or variable payments made to sales staff, usually composed of a base salary and possibly commissions based on sales performance.