When Are an Auditor's Reporting Responsibilities Not Met by Attaching

question 28

Multiple Choice

When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the entity's financial statement?

• A)When the independent auditor with sufficient appropriate evidence believes the financial statements are not prepared in accordance with GAAP.
• B)When the auditor was unable to observe the taking of the physical inventory.
• C)When the auditor is not independent.
• D)When the auditor has performed insufficient auditing procedures to express an opinion.

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Definitions:

Financial Budgets

Detailed plans that outline an organization's financial goals, revenues, and expenses over a specific period.

Sales Forecast

Predictive analysis of future sales based on historical data, trends, and market analysis.

Budget Committee

A group responsible for coordinating the preparation of the budget, reviewing and approving budget proposals, and monitoring financial performance.

Master Budget

A master budget is a comprehensive financial planning document that combines all of an organization's individual budgets and plans into a single, unified plan.