When Expressing an Opinion on a Specified Account or Item

question 10

Multiple Choice

When expressing an opinion on a specified account or item in the financial statements, the auditor need only consider that account or item. However, the auditor must have audited the entire set of financial statements if this engagement requires a report on the entity's:

• A)net income.
• B)retained earnings.
• C)assets.
• D)working capital.

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Definitions:

Pork-Barrel Legislation

Government spending for localized projects secured primarily to bring money to a representative's district, often criticized as wasteful and politically motivated.

Earmarks

Funds that are directed to specific projects, beneficiaries, or locations, often within larger spending bills, typically by legislative provisions.

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed legislation or interests, often regardless of merit.

Marginal Benefit

The additional satisfaction or value gained from consuming or producing one more unit of a good or service.