When There Is a Material Inconsistency Between the Financial Report

question 56

Multiple Choice

When there is a material inconsistency between the financial report and other information in the annual report, and the client refuses to change the information, the auditor should:

• A) do nothing as the audit opinion is confined to the financial report.
• B) include an emphasis of matter section in the audit report.
• C) advise ASIC and the ASX.
• D) issue a qualified opinion.

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Definitions:

Least-cost Center

A business unit or location chosen for its low operational expenses, contributing to overall efficiency and cost reduction.

Optimization Models

Mathematical models used to determine the most efficient and effective way to achieve a goal, often used in logistics, production, and scheduling.

Mathematical Procedures

Systematic, step-by-step algorithms or methods used to solve mathematical problems or perform mathematical operations.