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:

Legal

Pertaining to the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Worker Dissatisfaction

Describes a state where employees are unhappy or frustrated with their job conditions, management, pay, or other workplace issues.

Work Environment

The setting, conditions, and atmosphere in which an individual performs their job.

Continuous Process Improvement

A method aimed at constantly enhancing processes within an organization to achieve more efficient results and higher quality.