Disclaimers of Opinion Can Only Be Issued by Auditors Based

question 75

Multiple Choice

Disclaimers of opinion can only be issued by auditors based on which of the following?

• A)Violations of GAAP.
• B)Substantial scope limitations.
• C)Going concern.
• D)Lack of independence.
• E)Either B or D.

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Definitions:

Irrational

Acting without reason or understanding, often defying logical or expected behavior, particularly in economic contexts referring to market participants.

Weak-form Efficient

A form of market efficiency that asserts all past trading information is fully reflected in stock prices, and thus, technical analysis cannot consistently produce excess returns.

Behavioral Patterns

Regularities in the behavior of individuals or groups, often studied in psychology and economics to predict responses to stimuli or decisions.

Arbitrage Activity

The practice of buying and selling equivalent assets in different markets to exploit price discrepancies for a risk-free profit.