Kent Is Auditing an Entity's Compliance with Requirements Governing a Major

question 18

Multiple Choice

Kent is auditing an entity's compliance with requirements governing a major federal financial assistance program in accordance with the Single Audit Act.Kent detected noncompliance with requirements that have a material effect on that program.Kent's report on compliance should express a(an) :

• A)Unqualified opinion with a separate explanatory paragraph.
• B)Qualified opinion or an adverse opinion.
• C)Adverse opinion or a disclaimer of opinion.
• D)Limited assurance on the items tested.

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Definitions:

Risk-Free Asset

An investment that provides a guaranteed return with no risk of financial loss.

Stock Market

A marketplace where buyers and sellers trade shares of publicly held companies, reflecting the economic health and investor sentiment toward those companies.

Opportunity Cost

The value of the next-best alternative when a decision is made; it's what is foregone to undertake a certain action.

Capital

Financial assets or their financial value, including funds in deposit accounts, as well as the machinery, buildings, or equipment used in producing goods and services.