When an Adverse, Qualified, or Disclaimer of Opinion Is Issued

question 21

Multiple Choice

When an adverse, qualified, or disclaimer of opinion is issued, ASA 705 requires that the auditor's report includes:

• A) a clear description of all the substantive reasons for the opinion.
• B) where practicable, a quantification of the possible effect on the financial report.
• C) both A and B
• D) none of the above

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Definitions:

Internal Consistency

A measure of reliability; the degree to which different test items that propose to measure the same general construct produce similar results.

Odd-even Reliability

A measure of internal consistency reliability where a test is split into two parts (odd and even items) to assess the consistency of results across these halves.

Parallel Form Reliability

The consistency of test scores across different versions of a test designed to be equivalent in terms of content and difficulty level.

Parallel Form Reliability

Refers to the extent to which two versions of a test yield similar results, assessing the same skills or constructs under similar conditions.