When the Auditors of a Nonpublic Company Are Unable to Comply

question 36

True/False

When the auditors of a nonpublic company are unable to comply with generally accepted auditing standards,they should issue an opinion that is unmodified,but include an additional emphasis-of-matter paragraph in the report.

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, operates, and is personally responsible for all aspects of the business.

Legal Structure

The legal organization of a company, determining its legal personality, liability, and taxation methods. Examples include sole proprietorship, partnership, corporation, and LLC.

C Corporation

A business structure where the company is taxed separately from its owners, offering limited liability protection to its shareholders.

Legally Liable

The state of being legally responsible for something, typically involving a financial or other obligation.