In Which of the Following Cases Should the Auditor's Report

question 49

Multiple Choice

In which of the following cases should the auditor's report on compliance not include a statement that nothing came to the auditor's attention that caused the auditor to believe that the entity failed to comply with specified aspects of the contractual agreements or regulatory requirements?

• A) When the auditor has not identified any instances of noncompliance.
• B) When the auditor has expressed an unmodified or qualified opinion on the financial statements to which the applicable covenants of such contractual agreements or regulatory requirements relate.
• C) When the applicable covenants or regulatory requirements relate to accounting matters that have been subjected to the audit procedures applied in the audit of financial statements.
• D) When the auditor needs to obtain further evidence to corroborate audit evidence acquired from management and the accounting records.

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Definitions:

Newborn

A term used to describe an infant in the first few hours to weeks of life, typically up to 28 days old.

Prematurity

Birth occurring prior to the completion of 37 weeks gestation.

Congenital

A condition existing at the time of birth.

Birth

The process of giving life whereby an offspring is expelled from the body of its mother.