Which of the Following Is Least Likely to Result in an Emphasis-Of-Matter

question 9

Multiple Choice

Which of the following is least likely to result in an emphasis-of-matter paragraph being added to an unmodified auditor's report on the financial statements of a nonpublic client that sells jewelry through a retail store?

• A)A decision by the auditor to emphasize that the client is a part of a larger organization.
• B)Use of an unacceptable method to value inventory with results that differ materially from GAAP.
• C)A change from FIFO to specific identification accounting for inventory.
• D)A question as to whether the client will be able to remain a going concern.

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Definitions:

Term Life

Term life is a type of life insurance policy that provides coverage at a fixed rate of payments for a limited period, known as the relevant term.

Death Benefit

The sum paid to a beneficiary upon the insured’s death, provided through a life insurance policy.

Savings Plan

A program that encourages regular saving by setting aside a certain amount of income for future use, often with tax advantages or interest accrual.

Actuarially Determined

Calculated based on actuarial methods and assumptions, often referring to pension plan contributions or insurance risk assessments.