When a Client Declines to Disclose Essential Information in the Financial

question 13

Multiple Choice

When a client declines to disclose essential information in the financial statements or notes,the auditor of the financial statements should:

• A)Provide the information in the audit report,if practicable,and qualify the opinion because of a limitation on the scope of the audit.
• B)Provide the information in the audit report,if practicable,and qualify the opinion because of a departure from GAAP.
• C)Issue a disclaimer of opinion because the client has interfered with the auditor's function of assessing the adequacy of disclosure.
• D)Issue an unmodified opinion,but inform the reader by including the omitted information in the audit report.

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Definitions:

Monthly Cash Expenses

The total amount of cash spent by an individual or organization on various expenses within a month.

Internal Control

Procedures and processes implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency.

Financial Statements

Reports that summarize the financial condition and operations of a business, including balance sheet, income statement, and cash flow statement.

FIFO

First-In, First-Out, an accounting method for managing inventory and financial matters where the oldest inventory items are sold or used first.