Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?
I. The auditor is required to issue a disclaimer of opinion in the event of a material uncertainty.
II. The auditor is required to issue a disclaimer of opinion in the event of a going concern problem.

• A) I only
• B) II only
• C) I and II
• D) Neither I nor II

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Definitions:

Restrictive Indorsement

An endorsement on a negotiable instrument that limits the way the instrument can be used, such as by specifying a particular payee.

Fiduciary Duty

An obligation to act in the best interest of another party, for instance, the duty a trustee has towards the beneficiaries of the trust.

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.

Indorser

A person who signs a negotiable instrument, such as a check, over to another party, transferring ownership.