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:

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property.

Charter Business

A company that operates under a charter, offering specified services or engaging in a particular type of business, often subject to special regulations or privileges.

Secured Loan

A loan backed by collateral, providing the lender a right to claim the asset if the borrower defaults on the loan.

Priority

The order in which rights, obligations, or claims are ranked or considered, often in a legal context.