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.

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Definitions:

Negative Messages

Communications that convey rejection, denial, or displeasing information, often requiring careful wording to mitigate negative reactions.

Legal Liability

The responsibility or obligation under law to make restitution for wrongdoing or negligence.

Expressions Of Sympathy

Statements or gestures that convey understanding, support, and compassion to someone experiencing grief or hardship.

Provinces And Territories

Political and geographic subdivisions within a country, each with its own government and regulations.