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:

Non-Punitive Discipline

A disciplinary approach that focuses on instructive or corrective actions rather than punishment to address employee issues, emphasizing learning and future improvement.

Employee Complaints

Formal grievances or concerns raised by workers regarding their working conditions, treatment, or aspects of their employment.

Supervisory Level

A position in an organization responsible for overseeing the work of others, typically employees one level below in the hierarchy.

Ombudsperson

A designated individual from whom employees may seek counsel for resolution of their complaints.