Which of the Following Situations Will Not Result in Modification

question 64

Multiple Choice

Which of the following situations will not result in modification of the auditor's report because of a scope limitation?

• A)Restriction imposed by the client.
• B)Reliance placed on the report of another auditor.
• C)Inability to obtain sufficient appropriate evidential matter.
• D)Restriction caused by the circumstance of the engagement.

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Definitions:

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces the price per share.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.

Reverse Stock Split

A corporate action where a company decreases the number of its outstanding shares to increase the share price without altering the company's market capitalization.

Par Value

The nominal or face value of a bond, share, or other financial instruments, which does not necessarily reflect its market value.