If the Preparers of the Financial Report Believe That the Application

question 19

Multiple Choice

If the preparers of the financial report believe that the application of an accounting standard may mislead the users of those statements, and the auditor concurs with this view:

• A) a scope limitation will arise.
• B) a standard unmodified opinion can be issued.
• C) the accounting standard need not be followed.
• D) an emphasis of matter paragraph will be added to the audit report.

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Definitions:

Prostate Gland

Gland in male humans that secretes an alkaline, cloudy fluid that increases the motility of sperm.

Vas Deferens

A long, muscular tube that transports mature sperm from the testes to the urethra in preparation for ejaculation.

Bulbourethral Gland

A gland in males that secretes a fluid into the urethra to lubricate and neutralize acidity before ejaculation.

Reverse Transcriptase

An enzyme used by some viruses to synthesize DNA from RNA, playing a key role in the replication cycle of retroviruses.