Which of the Following Scenarios Does Not Result in a Qualified

question 104

Multiple Choice

Which of the following scenarios does not result in a qualified opinion?

• A) A scope limitation prevents the auditor from completing an important audit procedure.
• B) Circumstances exist that prevent the auditor from conducting a complete audit.
• C) The auditor lacks independence with respect to the audited entity.
• D) An accounting principle at variance with GAAP is used.

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Definitions:

Fixed Costs

Regular costs that do not vary with the scale of production or sales activities, encompassing rent, salary disbursements, and insurance contributions.

Target Net Income

The desired profit that a company aims to achieve within a specific period, often used in budgeting and planning.

Required Sales

Required sales represent the amount of sales needed to achieve a particular financial target, such as breaking even or reaching a desired profit level.

Variable Costs

Costs that change in proportion to the level of activity or production volume, such as raw materials and direct labor costs.