ASA 720 Requires the Auditor to Read Other Information in Documents

question 50

Multiple Choice

ASA 720 requires the auditor to read other information in documents containing audited financial reports that pertains directly to the financial report and to compare that information to make sure that it corresponds.If there is a material inconsistency, the client should be requested to change the information.If the client refuses, the auditor should:

• A) include an explanatory paragraph in the audit report or withdraw from the engagement.
• B) issue a qualified opinion or withdraw from the engagement.
• C) issue an adverse opinion.
• D) include an emphasis of matter section in the audit report.

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Definitions:

Settling Down

The act of beginning to live a stable and orderly life, commonly associated with establishing a long-term residence, career, or entering into long-term relationships.

Developmental Sequence

The ordered progression of behavioral, cognitive, or physical changes that occur as a person grows and matures.

Family Cycle

The series of stages through which a family progresses over time, including formation, expansion, contracting, and dissolution.

Family Pattern

Refers to the characteristics and dynamics within a family structure, including roles, relationships, and interactions among family members.