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.

Identifying strategies to mitigate personal perspective in decision-making.

Recognizing and avoiding decision-making traps, such as promising too much or responding inappropriately to failure.

Applying the principles of bounded rationality in decision-making scenarios.

Understanding the Osborne-Parnes Creative Problem Solving process and its application in decision-making.

---

Definitions:

Verbal Agreement

An agreement made through spoken words and not formally documented, which can sometimes be legally binding.

Charitable Tax Relief

Tax deductions or exemptions offered to individuals or organizations that make donations to qualified charitable entities.

Specific Performance

A court-ordered action compelling a party to fulfill their obligations under a contract, typically used when simple monetary damages do not suffice.

Breach of Contract

The violation of any agreed-upon terms and conditions in a binding contract.