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:

Diaphragm

A large, dome-shaped muscle located below the lungs that contracts and relaxes to aid in the breathing process.

Flexor Digitorum Profundus

A muscle located in the forearm that flexes the fingers at the distal interphalangeal joints.

Distal Portion

The part of a limb or structure that is farthest away from the center of the body.

Butcher

A professional who prepares meat for sale, often by slaughtering animals, dressing their flesh, and cutting it into pieces.