Which of the Following Is False Concerning the Principal CPA

question 29

Multiple Choice

Which of the following is false concerning the principal CPA firm's alternatives when issuing a report when another CPA firm performs part of the audit?

• A) Issue a joint report signed by both CPA firms.
• B) Make no reference to the other CPA firm in the audit report, and issue the standard unqualified opinion.
• C) Make reference to the other auditor in the report by using modified wording (a shared opinion or report).
• D) A qualified opinion or disclaimer, depending on materiality, is required if the principal auditor is not willing to assume any responsibility for the work of the other auditor.

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Definitions:

Facial Feedback Hypothesis

The idea that feedback from the face muscles evokes or magnifies emotions.

Cannon-Bard Theory

A theory in psychology that proposes emotional feelings and physiological reactions to stimuli are experienced simultaneously.

Arousal

A physiological and psychological state of being awake or reactive to stimuli.

Quickened Heartbeat

An increase in the speed at which the heart beats, often in response to excitement, stress, or physical exercise.