When Accounting Principles Are Not Consistently Applied, and the Materiality

question 103

Multiple Choice

When accounting principles are not consistently applied, and the materiality level is immaterial, the auditor will issue a(n) :

• A)unqualified opinion.
• B)unqualified opinion with an explanatory paragraph.
• C)adverse opinion.
• D)disclaimer opinion.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values are close to the mean.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.

Expected Value

The calculated average of all possible values in a probability distribution, weighted by their probabilities.

Bank Officers

Individuals responsible for overseeing the day-to-day operations and financial matters of a bank.