As a Result of Management's Refusal to Permit the Auditor

question 3

Multiple Choice

As a result of management's refusal to permit the auditor to physically examine inventory, the auditor has not accumulated sufficient evidence to conclude whether financial statements are stated in accordance with ASPE (Accounting Standards for Private Enterprises) . The auditor must depart from the unqualified audit report because

• A) the financial statements have not been prepared in accordance with GAAP.
• B) the scope of the audit has been restricted by circumstances beyond either the client's or auditor's control.
• C) the auditor has lost independence.
• D) the scope of the audit has been restricted by the client.

---

Definitions:

Achieve Goals

The process of identifying desired outcomes and taking steps to accomplish them.

360-degree Surveys

An assessment tool that collects feedback on an individual's performance from a variety of sources, including peers, subordinates, supervisors, and sometimes clients.

Leadership Competencies

The set of skills, behaviors, and attitudes that enables an individual to effectively guide, direct, and influence a group towards achieving goals.

Influence Actions

Efforts or strategies intended to affect the behaviors or decisions of individuals or groups.