An Auditor Was Unable to Obtain Audited Financial Statements or Other

question 57

Multiple Choice

An auditor was unable to obtain audited financial statements or other evidence supporting an entity's material investment in a large foreign subsidiary. Between which of the following reports should the auditor choose?

• A)Adverse and unqualified with an explanatory/emphasis-of-matter paragraph added.
• B)Disclaimer and unqualified with an explanatory/emphasis-of-matter paragraph added.
• C)Qualified and adverse.
• D)Qualified and disclaimer.

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Definitions:

Placebos

Inert substances or treatments used as controls in experiments, testing the effectiveness of medical interventions without any active ingredients.

Inactive Substances

Substances that have no intended therapeutic effect; often used as placebos in clinical trials to assess the efficacy of active treatments.

Fake Treatments

Interventions or procedures that are designed to mimic real treatments but do not contain any active ingredients or therapeutic value, often used in the context of clinical trials as placebos.

Experiment

A controlled test of a hypothesis in which the researcher manipulates one variable to discover its effect on another.