Which of the Following Is Correct Concerning a Public Company

question 44

Multiple Choice

Which of the following is correct concerning a public company audit report with a disclaimer of opinion?

• A)It must include in a section on critical audit matters the circumstances that led to the disclaimer.
• B)The title of the Opinion section will be changed to Basis for Disclaimer of Opinion.
• C)It will ordinarily be issued in situations in which financial statements are materially and pervasively misstated.
• D)The paragraph describing the reason for the disclaimer will follow the opinion paragraph and will not include a title.

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Definitions:

Appraised Fair Value

The estimated market value of an asset as determined by a formal assessment or valuation process.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or deliver a service.

Book Value

The amount of an asset or liability according to its balance sheet account, minus any depreciation, amortization, or impairment costs.

Inventory Items

Goods and materials that a business holds for the ultimate goal of resale or production.