A CPA Issued an Unqualified Opinion on the Financial Statements

question 12

Multiple Choice

A CPA issued an unqualified opinion on the financial statements of a company that sold common stock in a public offering subject to the Securities Act of 1933.Based on a misstatement in the financial statements,the CPA is being sued by an investor who purchased shares of this public offering.Which of the following represents a viable defense?

• A)The investor has not proven CPA negligence.
• B)The investor did not rely upon the financial statement.
• C)The CPA detected the misstatement after the audit report date.
• D)The audit work was adequate to support the CPA's opinion.

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Definitions:

Glycine

The simplest amino acid, with the chemical formula NH2CH2COOH, used in the body to make proteins.

Amino Acid

Organic compounds that serve as the building blocks of proteins, containing both amino (-NH2) and carboxylic acid (-COOH) functional groups.

Polypeptide

A molecule consisting of a chain of amino acids linked by peptide bonds, and is the building block of proteins.

Amino Acid Sequences

The order in which amino acids are linked together by peptide bonds in a protein or peptide.