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:

Matched Pairs T-test

A statistical procedure used to determine whether the mean difference between paired observations is significantly different from zero, often used with paired samples.

Statistics Test

Procedures used in statistical analysis to determine the likelihood that a given hypothesis is true, based on data sampled from a larger population.

Variances

Measures the spread of data points within a dataset relative to the mean, indicating how much the numbers in the set differ from the mean and each other.

T-distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population standard deviation is unknown.