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:

Rate

The percentage at which interest is charged on a loan or earned on an investment.

Term Deposit

A banking product where money is locked away for a certain period of time at a fixed interest rate.

Maturity

The time at which a financial instrument, investment, or insurance policy reaches its final value and the principal is repaid or returned.

Interest

The price paid for the opportunity to use borrowed finances, generally expressed through an annual percentage.