What Condition Requires Departure from an Unmodified Report

question 8

Multiple Choice

What condition requires departure from an unmodified report?

• A) a materially misstated financial report
• B) inability to obtain sufficient appropriate audit evidence
• C) both A and B
• D) none of the above

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Definitions:

Employee

An individual who performs work under the direction and control of an employer in exchange for compensation.

Reasonable Skill

The level of competence that one can expect from a person with the standard abilities and knowledge in a particular field.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract without a lawful excuse.

Agency Contract

A legal agreement where one party, the agent, agrees to act on behalf of another, the principal, in business dealings.