When an Auditor Does not Confirm Material Accounts Receivable,but Is

question 15

Multiple Choice

When an auditor does not confirm material accounts receivable,but is satisfied by the application of alternative auditing procedures,she normally should:

• A)Issue an unmodified opinion,but disclose elsewhere in the report this departure from a customary procedure.
• B)Issue an unmodified opinion with no reference to this omission.
• C)Issue a qualified opinion or a disclaimer,depending on the materiality of the receivables.
• D)Issue an adverse opinion.

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Definitions:

Signs the Contract

The act of agreeing to a contract's terms and legally binding oneself by signing a document.

Nondelegable Duty

An obligation or duty that cannot be transferred to another party and must be performed by the individual or entity originally charged with it.

Duty Of Care

The legal obligation to avoid actions or omissions that could foreseeably harm others.

Principal

The primary party to a transaction, such as a contract or financial instrument, who has the rights and responsibilities directly related to it.