In Which of the Following Situations Would an Auditor Ordinarily

question 9

Multiple Choice

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse opinion?

• A)The auditor did not observe the entity's physical inventory and is unable to become satisfied as to its balance by other auditing procedures.
• B)The financial statements fail to disclose information that is required by generally accepted accounting principles.
• C)The auditor's opinion is based in part on the report of another auditor.
• D)Events disclosed in the financial statements cause the auditor to have substantial doubt about the entity's ability to continue as a going concern.

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Definitions:

Bonus

Extra payment made to employees as an incentive or reward above their regular salary.

Bonus

An additional compensation awarded to employees as a reward for their performance beyond their usual salary.

Stock Outs

Occurs when an inventory item is not available in stock, leading to potential lost sales.

Office Supplies

Various products and equipment regularly used in offices, such as paper, pens, computers, and desks.