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:

Dependent Variable

The dependent variable is the variable being tested and measured in a scientific experiment, which is expected to change as a result of variations in the independent variable.

Anecdotal Evidence

Information derived from personal accounts, observations, or stories rather than from scientific analysis or hard data.

Statistical Evidence

Information derived from statistical procedures that is used to support or refute an assertion, hypothesis, or claim.

Persuasive Impact

The effect of communication or argumentation in convincing or influencing others to change their beliefs, attitudes, or behaviors.