Under Which of the Following Set of Circumstances Might the Auditors

question 10

Multiple Choice

Under which of the following set of circumstances might the auditors disclaim an opinion?

• A)The financial statements contain a departure from generally accepted accounting principles,the effect of which is material.
• B)The group auditors decide to make reference to the report of component auditor who audited a subsidiary.
• C)There has been a material change between periods in the method of application of accounting principles.
• D)The auditors cannot observe ending inventory nor confirm accounts receivable and cannot obtain sufficient evidence using alternative procedures.

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Definitions:

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture.

Parochialism

Parochialism assumes the ways of your culture are the only ways of doing things.

Reflective Reasoning

A cognitive process involving active and careful consideration of beliefs or knowledge in light of evidence or arguments.

Cross-Cultural Communication

The process of recognizing and understanding the differences and similarities in communication that occur across different cultures.