An Auditor Has Been Asked to Report on the Balance

question 7

Multiple Choice

An auditor has been asked to report on the balance sheet of Kane Company but not on the other basic financial statements.The auditor will have access to all information underlying the basic financial statements.Under these circumstances,the auditor:

• A)May accept the engagement.
• B)May accept the engagement but must disclaim an opinion because of an inability to apply the procedures considered necessary.
• C)Should refuse the engagement because there is a client-imposed scope limitation.
• D)Should refuse the engagement because of a departure from generally accepted auditing standards.

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Definitions:

Imitate

To copy or mimic the actions, behaviors, or appearances of someone or something.

Accidentally

Occurring without deliberate intention; happening by chance.

Formula

A method or set of principles that are used for solving a problem, or a specific type of nutritional drink for infants.

Primary Circular Reaction

A developmental phase identified by Jean Piaget, involving repetitive actions centered on the infant's own body, typically seen as a form of early learning.