A Scope Limitation Sufficient to Preclude an Unqualified Opinion Always

question 40

Multiple Choice

A scope limitation sufficient to preclude an unqualified opinion always will result when management:

• A)prevents the auditor from reviewing the working papers of the predecessor auditor.
• B)engages the auditor after the year-end physical inventory is completed.
• C)requests that certain material accounts receivable not be confirmed.
• D)refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with GAAP.

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Definitions:

Planning Beyond

A strategic approach focusing on setting long-term goals and objectives beyond the usual planning horizon.

One Year

A period consisting of 12 consecutive months or 365 days, used as a standard time measurement for various financial calculations.

Sales Forecasts

Predictions regarding the amount of products or services a business expects to sell over a certain period.