When a Material Uncertainty Exists, the Auditor Must

question 57

Multiple Choice

When a material uncertainty exists, the auditor must

• A) disclose it in the audit report.
• B) first determine the materiality of the item and whether adequate disclosure is included in the financial statements.
• C) issue a disclaimer of opinion.
• D) issue a qualified opinion.

---

Definitions:

Maslow's Hierarchy

A theory of human motivation that posits a hierarchy of psychological needs, from basic physiological needs to higher levels such as self-actualization.

Physiological Needs

Basic essential requirements for human survival, such as food, water, and shelter.

Safety and Security

Refer to measures and protocols implemented to protect individuals from harm or danger, ensuring physical wellbeing and protection against threats.

Motivated

Having a desire or willingness to act or work towards achieving personal or defined goals.