Your Client Has Experienced a Major Data Breach with Lawsuits

question 34

Multiple Choice

Your client has experienced a major data breach with lawsuits and fines pending of significant and uncertain amounts. These events are disclosed in the client's financial statements and are clearly explained in the notes. How do these events affect the independent auditor's report?

• A) The auditor would use a standard unqualified auditor's report.
• B) The auditor would use an emphasis of matter paragraph titled "Data Breach" to highlight the events.
• C) The auditor would use an "other matters" paragraph titled "Data Breach" to highlight the amounts.
• D) The auditor would use a qualified audit opinion due to the size of the uncertainty.

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Definitions:

Parental Duties

Responsibilities and obligations that parents have towards their children, including providing for their welfare, education, and safety.

Child Abuse

Any action or failure to act by a caregiver or parent that results in actual or potential harm to a child's health, survival, dignity, and development.

Neglecting

Failing to care for or give proper attention to duties, responsibilities, or individuals for whom one has an obligation.

Common Law

A legal system based on judicial decisions and precedents rather than statutory laws.