When the Auditor Determines That the Financial Statements Are Fairly

question 121

Multiple Choice

When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue

• A) an adverse opinion.
• B) a disclaimer of opinion.
• C) either a qualified opinion or an adverse opinion.
• D) either a qualified opinion or an unqualified opinion with modified wording.

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Definitions:

Redness

A condition of the skin or other tissues characterized by being redder than usual, often as a sign of inflammation or infection.

Swelling

An abnormal enlargement of a body part or area, typically as a result of an accumulation of fluid or inflammation.

Localized Warmth

A specific area of the body experiencing an increase in temperature, often indicating an underlying condition or reaction.

Receptors

Proteins located on the surface of or within cells that bind to specific molecules like hormones, antigens, or neurotransmitters, initiating a cellular response.