When the Client Fails to Include Information That Is Necessary

question 164

Multiple Choice

When the client fails to include information that is necessary for the fair presentation of financial statements in the body of the statements or in the footnotes,

• A) it is the auditor's responsibility to present the information in the audit report.
• B) the auditor should issue a qualified or an adverse opinion.
• C) the qualification is put in an added paragraph preceding the opinion.
• D) all of the above.

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Definitions:

Too Optimistic

Characterizes a perspective or expectation that is overly positive or hopeful, often without sufficient grounding in reality.

Exact Value

The precise numerical quantity or measurement without any approximation or error.

Same for All

A condition or policy applied equally to every member of a group.

Common-value Setting

An environment in which the value of an item or resource is the same for all participants but may be unknown at the time of transaction.