Which of the Following Scenarios Does Not Result in a Qualified

question 104

Multiple Choice

Which of the following scenarios does not result in a qualified opinion?

• A) A scope limitation prevents the auditor from completing an important audit procedure.
• B) Circumstances exist that prevent the auditor from conducting a complete audit.
• C) The auditor lacks independence with respect to the audited entity.
• D) An accounting principle at variance with GAAP is used.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification and is often influenced by external factors like political, economic, and social changes.

Political Upheaval

Significant disruption or change in the governing structure or policy of a country, often accompanied by protests or conflict.

Market Risk

The risk of losses in investments due to factors that affect the entire market, such as economic changes or political events.

Economic Events

Various incidents or transactions that may affect a country's economy, including government policies, market movements, and natural disasters, which can influence financial markets and economic health.