The Reporting Section of Principles Underlying an Audit Conducted in Accordance

question 14

Multiple Choice

The Reporting section of Principles Underlying an Audit Conducted in Accordance with GAAS requires the auditor's report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. The objective of this requirement is to prevent:

• A)an auditor from reporting on one basic financial statement and not the others.
• B)an auditor from expressing different opinions on each of the basic financial statements.
• C)management from reducing its final responsibility for the basic financial statements.
• D)misinterpretations regarding the degree of responsibility the auditor is assuming.

---

Definitions:

Mass Hysteria

A phenomenon where collective illusion of a threat spreads among a population, leading to fear and irrational behavior.

Tulipmania

A period in the Dutch Golden Age where contract prices for tulip bulbs reached extraordinarily high levels and then dramatically collapsed.

Asphyxiation

A condition arising from severely deficient supply of oxygen to the body that arises from abnormal breathing.

High Density Situations

Situations or environments where there is a high concentration of individuals in a given space, which can often lead to increased stress or social tension.