Which of the Following Would Not Require an Explanatory/emphasis-Of-Matter Paragraph

question 23

Multiple Choice

Which of the following would not require an explanatory/emphasis-of-matter paragraph in the auditor's report?

• A)Required supplementary information is omitted or departs materially from the requirement of the applicable financial reporting framework.
• B)Lack of comparability in the financial statements due to accounting changes.
• C)Going concern.
• D)Opinion based in part on the report of another auditor.

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Definitions:

Straddles Demand

An approach that aims to meet demand efficiently by preparing for both overestimation and underestimation scenarios.

Average Unit Cost Curve

A graphical representation showing how the cost per unit of producing a good changes with variations in the volume of its production.

Optimum Operating Level

The level of operation at which a company or system achieves its best performance in terms of efficiency and cost-effectiveness.

Diseconomies Of Scale

Diseconomies of Scale arise when a company or business grows so large that the costs per unit increase, leading to inefficiency and increased production costs.